If an investor wants passive income, then I think it's important to invest in ASX dividend shares that are very likely to actually deliver on providing a payment.
Dividend growth isn't guaranteed of course, but there are some names that are clearly more likely to grow their dividends than others. Just looking at the history of payments this decade can give a great indication of how reliable certain businesses could be.
I think it's important to acknowledge that certain business names are unlikely to be ultra-reliable in all conditions because they're linked to, for example, the economy (like discretionary retailers) or commodity prices (like miners).
Below are three of the ASX dividend shares that are on the longest streaks of annual dividend growth.
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Washington H. Soul Pattinson and Co Ltd (ASX: SOL)
This business is by far the leader in Australia when it comes to consistent dividend growth.
The investment house has increased its annual dividend per share every year since 1998, which is an incredible record.
Soul Patts is invested across numerous sectors like resources, telecommunications, energy, swimming schools, agriculture, industrial properties, electrification, and plenty more.
Every year, the ASX dividend share makes new investments that help improve the portfolio and could let it generate better returns in the long term, as well as improving its diversification.
Based on its last two payouts, it has a grossed-up dividend yield of 3.6%, including franking credits, at the time of writing.
APA Group (ASX: APA)
APA is one of the largest energy infrastructure businesses on the ASX. Its crown jewel is its national gas pipeline that transports half of Australia's usage. Its diverse portfolio also includes electricity transmission assets, wind farms, solar farms, batteries, gas power stations, gas processing facilities, and gas storage.
It funds its distribution from the steady growth of its cash flow from its portfolio. That cash flow is growing through regular additions to its portfolio (both organic construction and acquisitions), as well as the fact that its revenue is largely inflation-linked.
APA has grown its annual distribution every year since 2004, which means the ASX dividend share has provided more than two decades of continuous payment growth.
It expects to pay a distribution of 58 cents per security, equating to a distribution yield of 5.75%, at the time of writing.
Future Generation Australia Ltd (ASX: FGX)
The final ASX dividend share I want to tell you about is the listed investment company (LIC) Future Generation Australia.
LICs are a great structure for providing dividend payouts because of how they can decide on the level of the dividends they provide. They can also use profit reserves generated from previous years to continue paying a reliable dividend during economic downturns.
Future Generation Australia has increased its annual dividend every year for the past decade, which is an excellent and improving track record.
The ASX dividend share is invested in a number of funds of fund managers who work for free to enable the ASX dividend share to donate 1% of its net assets each year to youth charities.
For me, the most appealing factor is how large its dividend yield is. Its 2025 payout translates into a grossed-up dividend yield of 7.8%, including franking credits, at the time of writing.
