In an era of uncertainty, I think it could be a smart idea to own some of the most reliable ASX dividend stocks if we’re relying on the dividend payments. I’d name Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) as the top option.

Soul Patts, as it’s commonly known, is an investment house that has been operating for more than 120 years. Not many ASX shares can say they’ve been listed for more than a century.

But, I’m not just going to say it’s a great business to own because it’s old, though longevity is a useful attribute.

One of the more impressive elements of Soul Patts is that it has paid a dividend in every single year of its listed life, including through the world wars, the global pandemics, the economic recessions and so on. That alone is a very impressive history of reliability.

There’s a lot more to like about the business as a reliable ASX dividend stock.

Excellent dividend record

There are very few ASX shares that have grown their annual dividend every year going back to the GFC approximately 20 years ago.

But, only one ASX share has increased its annual payout every year this century. Soul Patts has the best record.

The ASX dividend stock has increased its annual ordinary dividend every year since 1998. If that doesn’t make it Australia’s most reliable business for dividends, I don’t know what would.

In the latest result, being the FY26 half-year result, Soul Patts decided to hike its interim dividend per share by 9.1% to 48 cents. That shows the business isn’t just growing its payout by 1% per year, it’s delivering sizeable increases.  

It currently has a grossed-up dividend yield of 3.5%, including franking credits, at the time of writing.

Rising cash flow

The business pays for its dividends from the cash flow that’s generated by its portfolio.

Its investment portfolio is spread across a number of industries including resources, energy, swimming schools, agriculture, property, credit, retirement living, water entitlements, financial services and plenty more.

By having a diversified portfolio that generate defensive cash flow, the business is able to continue providing reliable dividends.

But, the company doesn’t pay out all of its cash flow each year. The retained earnings can be used to invest in more opportunities.

In the FY26 first-half result, the company reported that its net cash flow from investments grew by 15.4% to $334 million. Its interim dividend only represented 54% of net cash flow from investments.

I expect the ASX dividend stock’s cash flow can continue to grow in the coming years.

Growing net asset value

Not only is the company growing its dividends and cash flow for shareholders, but the underlying value of the Soul Patts portfolio is increasing over time, which is a tailwind for the Soul Patts share price.

The business is investing in new assets, and its existing investments are growing.

In the first half of FY26, its net asset value (NAV) grew by 14.6% to $13.8 billion. I’m not expecting every result to show year-over-year growth of around 15%, but I think it’s likely to continue compounding at a pleasing pace.

With $2,000, an investor could buy 45 Soul Patts shares, which I think would be a great long-term buy.

The post $2,000 buys 45 shares in an impressively reliable ASX dividend stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) and Core Lithium Ltd (ASX: CXO) shares have both captured plenty of investor interest over the past three years.

And both stocks are well-known for making some big daily moves. Sometimes higher. Sometimes lower.

But only one of them has raced ahead of the 24.5% three-year gains posted by the S&P/ASX 200 Index (ASX: XJO), as at 10 September, while the other has struggled to regain some sharp losses.

So which ASX share was the better buy?

Core Lithium shares playing catch up

Spoiler alert, it wasn’t Core Lithium shares.

Three years ago, you may have been tempted to buy shares in the ASX All Ords lithium stock after the share price had crashed 76% over the prior 12 months.

On 8 September 2023, this saw the lithium miner trading for 37 cents a share.

So, for $10,000 you could have bought 27,027 Core Lithium shares.

In Thursday afternoon trade, those same shares were swapping hands for 38 cents apiece, up 2.7% in three years.

Meaning the 27,027 shares you bought three years ago for $10,000 are now worth $10,270.

Not a loss. But far from a gangbuster result either.

Investing $10,000 in DroneShield shares

Unlike Core Lithium shares, 8 September 2023 would have been an opportune time to snap up some DroneShield shares.

Three years ago, the ASX 200 drone defence stock was trading for 29 cents a share.

So, for $10,000 you could have picked up 34,482 shares.

On Thursday, the stock was trading for $1.69 a share, up an impressive 482.8% in three years.

And the 34,482 DroneShield shares you bought three years ago for $10,000 are now worth $58,275.

What’s been happening in 2026?

While DroneShield is the clear winner over our three-year time frame, 2026 has delivered markedly different results.

Indeed, at the recent share prices, DroneShield shares have tumbled more than 49% year to date, while Core Lithium shares have surged more than 31% in 2026.

That strong performance from Core Lithium will see the stock return to the S&P/ASX 300 Index (ASX: XKO) commencing on 21 September as part of the S&P Dow Jones Indices September quarterly rebalance.

Investors have been piling back into Core Lithium shares as lithium prices recovered from their 2025 lows. That recovery has also seen the beaten down miner advance its previously mothballed Finniss Lithium Operation, located in the Northern Territory, back towards production.

Commenting on the project in July, managing director Paul Brown said:

Core is in a very strong operational and financial position, with the foundations in place to continue executing to plan and ample funding to advance Finniss to steady state production in 2028.

The post $10,000 invested in DroneShield and Core Lithium shares 3 years ago is now worth… appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Reaching 50 with little or no savings would be daunting.

But I would not see it as too late to start.

There would still be time to build meaningful wealth, particularly if I could save consistently and avoid making the process more complicated than it needs to be.

And if I were starting from scratch, I would take plenty of inspiration from Warren Buffett.

Why Warren Buffett?

Buffett, often called the Oracle of Omaha, has spent decades showing what patient, disciplined investing can achieve.

He took control of Berkshire Hathaway (NYSE: BRK.A) in the 1960s when it was still a struggling textile business.

Over time, he transformed it into one of the world’s most valuable companies.

The textile operations eventually disappeared, while Berkshire became a collection of high-quality businesses and investments spanning insurance, railroads, energy, manufacturing, consumer products, and listed shares.

A big part of Buffett’s success has come from buying good businesses, holding them for long periods, and allowing compounding to do the work.

That is the part I would copy.

I would focus on quality

Starting at 50 would make me reluctant to gamble on highly speculative shares.

I would want companies with strong balance sheets, proven business models, good competitive positions, and the ability to increase earnings over many years.

On the ASX, that could lead me toward businesses such as Wesfarmers Ltd (ASX: WES), ResMed Inc (ASX: RMD), Goodman Group (ASX: GMG), and TechnologyOne Ltd (ASX: TNE).

They are different companies, but each has qualities that could allow it to keep becoming more valuable over time.

I would not expect every investment to work perfectly.

Buffett has made plenty of mistakes himself. The important thing is making sure the winners have the potential to do far more good than the losers do damage.

I would keep adding money

With no savings at 50, investment selection would only be part of the job. I would need to build the capital base.

That means investing regularly and increasing contributions whenever possible.

If I could invest $1,500 a month and generate an average annual return of 10%, after 15 years the portfolio could grow to around $600,000.

At $2,000 per month, it could reach roughly $800,000.

Those returns are not guaranteed, of course, but they show why starting now is so much better than waiting another five years.

I would leave the portfolio alone

One of Buffett’s greatest advantages has been patience. He has often held successful investments for decades rather than constantly trading in and out of the market.

I would try to do the same. Once I owned quality businesses, I would give them time to grow earnings, reinvest profits, pay dividends, and compound.

I would still review the portfolio and sell if the investment case genuinely changed. But I would not let every market fall, broker downgrade, or bad week convince me to start again.

At 50, I would not have time to waste. But I would still have enough time for patience, regular investing, and compounding to make a very meaningful difference.

The post With no savings at 50, I’d follow Warren Buffett’s approach to build wealth appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Goodman Group, ResMed, and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway, Goodman Group, ResMed, and Wesfarmers. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Berkshire Hathaway, Goodman Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.