There are some potentially reliable ASX dividend shares that could be worth considering in August 2021.
Share prices can be very volatile in any given year. But dividends can be much more consistent because they are decided by the company.
I think these two ASX dividend shares could be ones to consider:
Brickworks Limited (ASX: BKW)
Brickworks is one of my favourite income ideas.
For starters, it has a long track record of paying consistent or growing dividends. It hasn’t cut its dividend for over four decades.
The company has also increased its dividend every year for the last several years.
In the first few decades of its reliability streak, it was the investment in WHSP (see below) that drove that consistency.
But now it has a growing industrial property trust which is becoming a bigger part of the business. Brickworks owns half of the trust, which is building quality properties on excess Brickworks land in key locations, particularly in Sydney.
The net rental profit and net value of the trust is expected to increase significantly when two mega, high-tech warehouses have been completed for Coles Group Ltd (ASX: COL) and Amazon. There is still plenty more land to build on after that.
I’m also becoming increasingly interested by the US operations of the business.
This week the ASX dividend share announced the acquisition of the largest independent brick distributor in the US. That acquisition also sells other building materials.
I think there’s good potential for Brickworks to expand into the manufacturing of other building materials in the US beyond bricks, like it has in Australia. The US is a huge market.
Brickworks currently has a fully franked dividend yield of 2.4%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) (WHSP)
This ASX dividend share has the best record around in my opinion.
It has grown its dividend every year for the last two decades (and counting).
WHSP has managed to do that because of its defensive portfolio of unrelated investments.
Some of its current biggest investments include TPG Telecom Ltd (ASX: TPG), Brickworks and New Hope Corporation Limited (ASX: NHC).
It has a portfolio spread across a wide number of other industries including resources, pharmacies, agriculture, financial services, listed investment companies (LICs), swimming schools and property.
It is still increasing its portfolio as it reinvests some of its cashflow each year into more opportunities, after paying a slightly higher dividend.
The acquisition of Milton Corporation Limited (ASX: MLT) will give the ASX dividend share much more fire-power to work with.
At the current WHSP share price, it has a fully franked dividend yield of 1.9%.
