ASX dividend shares had a very good August, with the largest payout increases in years.
Reporting season also produced dozens of dividend cuts.
Three S&P/ASX 200 Index (ASX: XJO) names stood out, and one of them goes ex-dividend today.
The best ASX dividend shares grow the payment year after year.
All three of these companies have an outstanding record of doing just this.
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1. BHP
BHP Group Ltd (ASX: BHP) produced the standout raise of the season.
The final dividend came to US$0.99 per share, or roughly A$1.38, an increase of about 51.5% on last year.
The full-year payment reached US$1.72 per share fully franked, up 56% and the highest in four years.
The shares go ex-dividend today, with payment following on 23 September.
BHP explained the return clearly in its results:
This brings total cash returns to shareholders announced for the year to US$8.7 bn, which is US$1.72 per share fully franked, the highest in four years.
FY26 revenue rose 15% to US$58.8 billion and underlying profit jumped 30% to US$13.2 billion.
Copper prices rose 18% across the year, iron ore gained 7%, and metallurgical coal climbed 39%.
2. Woolworths
Woolworths Group Ltd (ASX: WOW) delivered a strong combination of growth and payout of these stocks.
The final dividend rose 15.6% to 52 cents per share.
Impressively, FY26 sales reached $71.54 billion, with EBITDA up 6.7% and net profit after tax rising 15.4%.
The company's shares closed August at $40.31 and are up 33.7% so far this calendar year.
However, at such valuation levels, there is reason for caution.
A supermarket growing profit at 15% is doing well, and a supermarket rerating 33.7% in eight months is doing something else entirely.
The dividend growth is strong, though the yield has compressed as the shares have run.
3. Coles
Coles Group Ltd (ASX: COL) raised its final dividend 15% to 37 cents per share.
FY26 sales rose 2.8% to $45.58 billion, EBIT grew 9.9%, and net profit after tax increased 13.7%.
Coles is the cheaper of the two supermarkets, but also the slower grower.
The company's sales growth of 2.8% trails Woolworths, though its earnings growth was close enough for this not to be a major concern.
For income investors, the more modest rerating leaves a better starting yield.
Why these ASX dividend shares could continue to raise payouts
The common thread is pricing power rather than cost cutting.
BHP benefited from commodity prices moving in its favour across every major division.
Both supermarkets passed inflation through to shoppers while volumes held up.
None of the three relied on a balance sheet decision to fund the increase, which is what separates a sustainable raise from a one-off.
Foolish takeaway for ASX dividend shares
Of the three, Coles offers the best value and the least excitement.
Woolworths has the stronger momentum and the harder valuation to justify after a 33.7% run.
BHP has the largest raise and the most cyclical earnings behind it.
Investors chasing ASX dividend shares should focus on whether the underlying business can repeat the payment.
On that test, the supermarkets look more dependable and BHP looks more rewarding.
