Finding an ASX dividend share paying out a healthy dividend yield is one thing on the ASX. But finding a company that manages to consistently and generously raise its annual dividend payouts to investors is another.
Long-term income investors know that the best way to build generous dividend income is by finding rising dividends, not just high ones.
So with that in mind, let’s discuss two ASX dividend shares that have grown their shareholder payouts by 20% in five years.
2 dividend shares that have hiked payouts by 20% since 2017
Rural Funds Group (ASX: RFF)
Rural Funds Group is an agriculture-focused ASX real estate investment trust (REIT). It invests in a variety of farmland assets and passes on the rental income from said assets to its investors. At present, it owns interests in a variety of agricultural products, including almonds, beef, macadamias and vineyards.
Rural Funds targets a 4% growth rate for its annual dividend distributions. Back in 2017, it doled out a quarterly dividend distribution of 2.41 cents per unit. But back in October, Rural Funds paid its investors its latest quarterly distribution which was worth 11.72 cents per unit. That’s a five-year increase of 21.58%.
Rural Funds shares have dipped over 2022, as you can see below:
This has helped push up Rural Funds’ dividend distribution yield to the 4.76% we see today.
APA Group (ASX: APA)
Next up is ASX gas pipeline operator APA Group. APA has one of the steadiest dividend graphs on the ASX, helped in part by reliable rental income from the use of its gas pipeline network.
In 2017, this company doled out 43.5 cents per share in dividend income. In 2022, APA has paid its shareholders a total of 53 cents per share in dividends. That represents a five-year growth rate of 21.84%.
The APA share price is a bouncy one, as is evident below:
The current share price gives APA shares a trailing dividend yield of 4.8% right now.
The post 2 ASX dividend shares that have raised their payouts by 20% in 5 years appeared first on The Motley Fool Australia.
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*Returns as of December 1 2022
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More reading
- 2 safe and reliable ASX dividend shares to buy for 2023: analysts
- Hereâs how Iâd invest $5,000 in ASX dividend shares to earn a second income
- 3 ASX 200 dividend shares that could provide a lifetime of passive income
- Could our dividends now be too reliant on ASX 200 oil shares?
- Why Iâm buying ASX shares in this once-in-a-lifetime market to try and retire early
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group and Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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