I think the best ASX dividend shares can provide investors with a mixture of capital growth and dividends, which could suit grandparents, children and anyone in between. Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) could be the best pick of the bunch.
Past performance is not a guarantee of future performance, but over the last four years, the Soul Patts share price has risen by around 70%. That's a pleasing level of growth, and that's before we've even talked about the dividend.
Soul Patts is an investment conglomerate. Let's get into why it's such an appealing option for dividend income.
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Diversification
As an investment house, the business has built up a diversified and impressive portfolio.
The company has a flexible mandate to invest in almost any assets in different markets.
For example, Soul Patts is currently invested in resources, energy, telecommunications, swimming schools, agriculture, water entitlements, electrification, financial services, retirement living, industrial property, building products, credit and plenty more.
This portfolio provides Soul Patts with a defensive and largely uncorrelated source of cash flow to pay dividends.
I like that the ASX dividend share regularly adds to the portfolio (and occasionally divests) to ensure the portfolio is future-focused and has a compelling future.
Longevity
To make any investment for a grandparent, I'd want to invest in something that has a long track record and is unlikely to result in a permanent capital loss.
The diversification of the ASX dividend share's portfolio is useful, but I think its longevity is even more impressive.
It has been listed in Australia for more than 120 years, making it one of the oldest businesses on the ASX.
If there was going to be one business within the S&P/ASX 200 Index (ASX: XJO) that I'd bet would still be around in another 20 or 30 years, it'd be Soul Patts because of the ASX dividend share's ability to change its portfolio.
Reliable ASX dividend share
I think its reliable dividend is the top reason to like Soul Patts as an ASX dividend share.
The business has increased its annual ordinary dividend every year since 1998. No other ASX share has a record like that.
Perhaps just as impressively, Soul Patts has paid a dividend every year for more than 120 years, including through wars, pandemics, economic crashes, and so on.
I have a high level of optimism that the company can continue its dividend growth record for grandparents and every other aged investor wanting an ASX dividend share.
