ASX dividend shares that increase their payouts regularly are very attractive to me.
I prefer consistent dividend growth over large dividend yields or cyclical payouts that bounce up and down.
If I'm relying on passive income, then I want to have a high level of confidence that my dividends will continue flowing into the bank account.
Below are the two ASX dividend shares that have increased their dividend payouts the most years in a row.
Image source: Getty Images
APA Group (ASX: APA)
APA has the second-best record on the ASX. It has increased its annual distribution every year for the past 22 financial years.
The business describes itself as a leading energy infrastructure business with a portfolio of more than $20 billion of assets. That includes gas transmission, processing, compression and storage assets. It also has gas-powered energy generation and renewable energy generation. Additionally, APA owns and operates battery storage and electricity transmission infrastructure.
The business regularly invests in its portfolio such as new pipelines, new energy generation and new electricity transmission, helping grow its free cash flow, which funds the larger distributions. In FY26, free cash flow grew 3.2% to $1.1 billion and underlying operation profit (EBITDA) grew 8.3% to $2.18 billion.
The ASX dividend share grew its FY26 distribution by 1.8% to 58 cents per security and expects to hike it again in FY27 to 59 cents per security. That translates into a guided distribution yield of 5.5% for FY27.
I like how the business is balancing investing in the business, together with rewarding investors with larger payouts.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts has the best record of all when it comes to consistent dividend growth, which is partly why this business is one of my largest holdings.
The ASX dividend share has increased its regular annual dividend per share every year since 1998, which is a truly impressive streak.
It has managed to deliver that payout growth by maintaining a diversified portfolio across a range of sectors that can produce defensive/largely uncorrelated cash flow. Some of the places it's invested in includes energy, telecommunications, property, building products, retirement living, agriculture, water entitlements, financial services, electrification, swimming schools, credit and plenty more.
Having that diversification helps reduce risks and helps Soul Patts search for opportunities across a wide array of assets. It has highlighted it's looking internationally for opportunities too – Australia and the ASX have been the focus.
In the FY26 half-year result, Soul Patts hiked its interim dividend by 9.1% to 48 cents per share, which was a solid increase, in my view.
The ASX dividend share's latest two dividends amount to a grossed-up dividend yield of 3.5%, including franking credits, at the time of writing.
Overall, I think these are two of the best ASX dividend shares around and are likely to continue hiking their payouts for the foreseeable future.
