In this era of uncertainty I think it’s prudent to only focus on the reliable dividend shares on the ASX.
I don’t want to hold shares where only a small recession, or no recession at all, causes a dividend cut like we saw with Telstra Corporation Ltd (ASX: TLS).
I think the below shares are some of the most reliable dividend shares on the ASX:
Ramsay Health Care Limited (ASX: RHC)
Ramsay is the one of the biggest private hospital operators outside of North America with its networks in Australia and Europe.
The company could be one of the main beneficiaries from Australia’s ageing tailwinds as the number of people over 65 is expected to grow by 40% over the next decade and increase by 70% over the next two decades.
This constant increase of potential patients should mean a steady increase of hospital visitors and earnings over time. It has increased its dividend each year since 2000.
Ramsay has a grossed-up dividend yield of 3% and it grew the dividend by 5.2% in FY19.
WAM Research Limited (ASX: WAX)
WAM Research is a listed investment company (LIC) and one of the best run by Wilson Asset Management in my opinion. It focuses just on the quality of the underlying businesses that it invests in.
It’s quite diverse and it holds dozens of shares, so there’s not much individual share risk with this option, although it does have management fees and outperformance fees.
WAM Research has been steadily growing its dividend since the GFC whilst holding onto a solid profit reserve. It has a grossed-up dividend yield of 9.7% and in FY19 grew its dividend by 2.1%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is an investment conglomerate and it may be the most reliable dividend share on the ASX. It has paid a dividend every year since it listed over a century ago thanks to its diverse investments, long-term focus, contrarian style and re-investment into more opportunities.
Some of its biggest holdings have very reliable underlying earnings like TPG Telecom Ltd (ASX: TPM) and Brickworks Limited (ASX: BKW).
Soul Patts has increased its dividend each year since 2000, it currently has a grossed-up dividend yield of 3.6%.
I think each of these shares are great options for reliable dividends if you’re worried about a downturn. Out of the three I think Soul Patts is the clear winner for reliable dividends, it already has a great history of dependable income.
The post 3 very reliable ASX dividend shares to buy appeared first on Motley Fool Australia.
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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Brickworks and Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019