In this period of uncertainty and volatility, it would be understandable for some investors to be looking for defensive ASX dividend shares.
These are companies that have been providing shareholders with consistently growing dividends for a number of years.
Washington H. Soul Pattinson and Co Ltd (ASX: SOL)
Soul Pattinson is one of the oldest businesses on the ASX, having been listed in 1903.
It operates as an investment house, meaning it has a portfolio of various assets in different sectors. Soul Pattinson says its investment approach is “focused on investing in resilient businesses with good long-term prospects and excellent management”.
The ASX dividend share has a portfolio of large caps and a portfolio of small caps, as well as large positions and private equity investments. In terms of key sectors, it’s invested in telecommunications, building products, property, agriculture, resources, and financial services.
Three of its largest investments include Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG), and New Hope Corporation Limited (ASX: NHC).
Some of its other sizeable investments include Tuas Ltd (ASX: TUA), Pengana Capital Group Ltd (ASX: PCG), Apex Healthcare, Round Oak Metals, Ampcontrol, Ironbark, and Aquatic Achievers.
One of Soul Pattinson’s main aims for shareholders is to grow the dividend. It has increased its annual dividend every year since 2000.
When the company released its FY22 half-year result, Soul Pattinson Chair Robert Millner said:
The outlook for cash generation looks strong and has enabled the board to increase the interim dividend consistent with its policy objective of steadily growing dividends.
WHSP is the only company in the All Ordinaries Index (ASX: XAO) to have increased its dividend every year for more than 20 years.
The company lifted its interim dividend by 11% to 29 cents a share in its latest report. It currently has a grossed-up dividend yield of 3.25%.
Sonic Healthcare Limited (ASX: SHL)
Sonic Healthcare is a large pathology business with operations in countries including Australia, Germany, the US, and New Zealand. Additionally, Sonic Imaging Australia is the second-largest radiology provider in Australia.
This ASX dividend share has a stated progressive dividend policy. It has grown its dividend every year for the past decade with steady organic growth and acquisitions.
Profit has been boosted over the last two years with COVID-19 testing. It has processed millions of tests. Sonic has used some of this money to make earnings-accretive acquisitions such as Canberra Imaging.
The company expects a sustainable level of COVID-19 testing into the future, including routine testing, screening programs, variant testing, whole genome sequencing, and antibody tests.
In the latest result, which was for the six months to 31 December 2021, the ASX dividend share grew its interim dividend by 11% to 40 cents per share.
At a franking rate of 100%, Sonic Healthcare has a grossed-up dividend yield of 3.9%.
The post 2 defensive ASX dividend shares for long-term income appeared first on The Motley Fool Australia.
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More reading
- Top ASX dividend shares to buy in April 2022
- Why has the Washington H. Soul Pattinson share price leapt 13% in 3 weeks?
- These are 2 of the most diversified ASX 200 shares
- 3 reasons why the Sonic Healthcare (ASX:SHL) share price could be an opportunity
- Top ASX shares to buy in April 2022
Motley Fool contributor Tristan Harrison owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Sonic Healthcare Limited and TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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