S&P/ASX 200 Index (ASX:XJO) is a wonderful place to find passive income opportunity. There is a great ASX 200 dividend stock I want to highlight the incredibly reliable and consistent dividend. that name is Washington H. Sol Pattinson & Co. Ltd. (ASX:SOL), an investment house.
The business is one of the oldest businesses on the ASX, having been listed for over 120 years.
It has a great history – the business started as a pharmacy business, but through numerous investments it has expanded into multiple sectors and asset classes.
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Incredibly Reliable ASX 200 Dividend Stocks
The business pays its dividends net of cash flow From its investments (NCFI), after paying its own operating expenses.
Therefore, net cash flow growth is an important metric when looking at how well this company can finance its growing dividend.
Dividend growth has been surprisingly consistent. The business has increased its annual regular dividend every year since FY98 – a 28-year payout increase!
In terms of consecutive years of dividend growth, this is the best record on the ASX!
FY26 Half Yearly Results The business reports NCFI growth of 15.4% to $334 million. On a per-share basis, NCFI rose to 89 cents.
In the HY26 period, it raised its interim dividend by 9.1% to 48 cents per share.
The good thing is that the dividend has increased Compound Annual Growth Rate (CAGR) of 11.9% in the last five years.
The payout is growing rapidly, it’s not just a slow-growing dividend.
In addition to all of the above, ASX 200 dividend stocks have paid dividends for 123 consecutive years. It also has an excellent reliability record.
but this is dividend yield It’s not as high because it’s relatively low (and durable) dividend payout ratio. However, this does help with future dividend growth. Its last two dividends amount to a gross-up dividend yield of 3.6%, which includes franking credit.
But, for example, if it were to increase its next two dividends by another 9%, its upcoming grossed-up dividend yield, including franking credits, would be around 4% at the time of writing.
If someone invested $1,000 in Soul Pats shares today, they could buy 23 shares with little change.
great portfolio
Of course, we shouldn’t invest in ASX 200 dividend stocks Now! For passive income or without knowing what it does.
Sol Pats has invested in many sectors such as resources, energy, telecommunications, building products, industrial property, financial services, retirement life, swimming schools, agriculture, credit and much more.
I like that the business generates its returns from a variety of sources. This means its cash flow is diverse, and it can look to a broader spectrum of industries for ideas.
I have made this company my largest holding because it offers everything investors want a mix of passive income and capital growth.