1 impressively awesome Australian dividend stock down 20% to hold for decades!

The Australian dividend stock Washington H. Soul Pattinson and Co Ltd (ASX: SOL) looks far too cheap to me after its fall of approximately 20% since 10 September 2025, as the chart below shows.

There are not many businesses as old as Soul Patts on the ASX – it has already been listed for 120 years.

I'd say there are plenty of reasons to believe the business will continue to be an excellent ASX dividend share for decades to come, for both passive income and capital growth.

There are a few reasons why I've made this business my largest holding and why I'm optimistic about the future.

Long-term investing

The business operates as an investment conglomerate, it makes active decisions about what to invest in.

Management has broad flexibility to invest in virtually any asset class, whether it's a large or small business.

Thankfully, the company doesn't need to invest with any particular time horizon in mind, unlike some active fund managers. The Australian dividend stock can be an investor, a partner, or the complete owner of the businesses/assets it invests in.

By taking a long-term approach with its own investments, Soul Patts itself is able to be a pleasing long-term investment for Aussies.

It has invested in a number of compelling areas in recent times, such as nuclear energy, agriculture, swimming schools, a funeral operator, electrification, industrial properties, building products, and more to diversify and potentially strengthen its long-term returns.

I think the business is boosting its appeal as it steadily adds to its portfolio. Its investment flexibility allows it to ensure its portfolio is future-proof by selling assets with weakening outlooks and buying into more appealing ideas.

Great dividend track record

In my view, Soul Patts is the best Australian dividend stock around. It doesn't have the highest dividend yield. But it does have an incredible record of consistency for paying dividends.

It has paid a dividend every year in its listed life (of around 120 years) – that's through the world wars, global pandemics, economic crashes, and various other challenges.

The business has also increased its annual ordinary dividend every year since 1998. That's the longest dividend growth streak on the ASX and suggests to me the business is heavily focused on continuing that record of payout growth for investors, though that's not a guarantee.

I'm expecting the business to grow its dividend in FY26, with the 2025 financial year payout of $1.03 per share translating into a grossed-up dividend yield of 4.1%, including franking credits. That's a great starting point, in my view, and the payout could steadily grow over the coming years.

The post 1 impressively awesome Australian dividend stock down 20% to hold for decades! appeared first on The Motley Fool Australia.

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.

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