3 ASX Dividend Stocks Every Income Investor Should Own

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If you’re looking for income, here are three ASX dividend stocks every investor should own.

Washington H. Soul Pattison – more affectionately known as “Soul Patts” by investors – is one of, if not the most reliable ASX dividend stocks.

Run by the Millner family, Soul Patts has an unrivaled dividend record, recently recording its 24th consecutive increase in the interim dividend.

The company holds significant stakes in several companies, including TPG Telecom SA (ASX:TPG), Brickworks Limited (ASX: BKW) and New Hope Corporation Limited (ASX:NHC).

Soul Patts also has a portfolio of ASX listed companies, private equity and real estate assets.

This is similar to a standard portfolio with a stable dividend yield of 2.3%.

The distribution of earnings may not seem lightning today, but given Soul Patt’s track record, expect that yield to increase over time.

Source: SOL HY22 presentation

Wesfarmers has come a long way from its days as a Western Australian farmers’ co-operative.

Today, the company holds an interest in more than 27 entities. The most notable investment is Bunningswhich accounts for the lion’s share of profits.

Other assets include office work, Kmart, catch.com and Target.

Generally speaking, the conglomerate structure has gone out of fashion lately (see General Electric or News Company).

But Westfarmers bucked the trend and continues to outperform the broader market.

With a fully franked dividend yield of 3.5%, Wesfarmers is an excellent ASX dividend stock for income portfolios.

Now the biggest company on the ASX, BHP is an ASX dividend stock that most investors are familiar with.

Its vast iron ore operations have recently attracted attention. But BHP is more than just an iron ore miner.

The company also owns mines for a variety of other commodities, including metallurgical coal, copper, nickel and potash.

With so many different exhibits, management has to be on top form. Fortunately, BHP has a forward-looking management team.

The best proof of this is the decision to sell its oil assets to Woodside Petroleum Limited (ASX: WPL) in exchange for a 48% stake, which will be distributed to shareholders.

Rather than seeing BHP as just another miner, I think it has capable management with active exposure to commodities.

The company is always subject to the vagaries of the economy.

But throughout the cycle, BHP offers investors a diversified base of commodities with steady dividend income.

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