There are some S&P/ASX 200 Index (ASX: XJO) shares that keep growing their dividend every year.
Plenty of large ASX dividend shares didn't grow the dividend in FY20, like Telstra Corporation Ltd (ASX: TLS), Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).
But there are some ASX 200 shares that keep growing the dividend, like these:
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Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is the ASX 200 share that has increased its dividend for the longest number of years in a row. It has a consecutive dividend growth streak going back to 2000.
It operates as an investment conglomerate. That means it owns both listed and unlisted investments. Some of its listed investments include TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API) and New Hope Corporation Limited (ASX: NHC).
Unlisted investments include agriculture, financial services, resources and swimming schools.
The ASX 200 dividend share retains some of its cashflow each year to re-invest into more opportunities.
At the current Soul Patts share price it has a grossed-up dividend yield of 3.1%.
JB Hi-Fi Limited (ASX: JBH)
JB Hi-Fi has increased its dividend consistently over the past several years. Consistent growing of profit over the long-term has helped fund those dividend increases.
In FY20, which included COVID-19, the ASX 200 dividend share grew total sales by 11.6% to $7.9 billion, underlying net profit after tax rose by 33.2% to $332.7 million and underlying earnings per share (EPS) went up 33.2% to 289.6 cents.
JB Hi-Fi's final dividend went up 76.5% to 90 cents per share whilst the total FY20 dividend rose by 33.1% to 189 cents per share.
The continuing growth is evident in JB Hi-Fi's FY21 half-year update. The retailer said that its sales went up by 23.7% to $4.94 billion, earnings before interest and tax (EBIT) went up 75.9% to $462.7 million and net profit after tax (NPAT) rose by 86.2% to $317.7 million.
Management said that sales momentum was strong throughout the half, with continued elevated customer demand for consumer electronics and home appliances products. This, combined with high growth of online sales and a strong Black Friday sales period, more than offset the impact of the government mandated temporary store closures during the half. Online sales went up 161.7% to $678.8 million, which represented 13.7% of total sales.
The ASX 200 share said that gross margins were well managed with strong improvements in gross margins in key categories, particularly in The Good Guys, but was offset by the sales mix in JB Hi-Fi Australia and JB Hi-Fi New Zealand.
JB Hi-Fi also said that disciplined cost control combined with strong sales growth drove significant operating leverage. It didn't receive any government wage subsidies and continued to pay landlords and team members throughout the half, including the periods where stores were temporarily closed.
At the current JB Fi-Fi share price it has a grossed-up dividend yield of 5.1%.
Domino's Pizza Enterprises Ltd. (ASX: DMP)
Domino's is another ASX 200 share that has steadily grown its dividend over the past several years, by a substantial amount.
The pizza ASX 200 share has grown its store count globally, increased its same store sales and improved its technology further for both customers and the pizzamakers.
In FY20 it saw its network sales rise by 12.8% to $3.27 billion, with online sales surging 21.4% with it being boosted during the COVID-19-affected period. FY20 EBIT went up 3.6% to $228.7 million and free cashflow rose 90.7% to $161.9 million. The number of stores increased by 6.5% to 2,668 stores globally across ANZ, Japan and Europe.
The result helped the Domino's board decide to increase the full year dividend by 3.3% to 119.3 cents.
Over the next three to five years it's hoping to achieve annual same store sales growth of 3% to 6% and annual organic new store additions of 7% to 9%. Over the long-term it thinks it can reach a total of over 5,500 stores.
At the current Domino's Pizza Enterprises share price it has a grossed-up dividend yield of 2.1%.
