- While certain shares are known to pay dividends to shareholders, the others have high growth potential.
- Investors pick up these shares based on their needs and investment portfolio requirements.
- However, there also exist some shares that can provide a mix of both dividends and capital growth.
While certain shares are known to pay dividends to shareholders, the others have high growth potential. Investors pick up these shares based on their needs and investment portfolio requirements. However, there also exist some shares that can be classified both as growth and dividend stocks. These stocks can provide shareholders useful mix of both dividends and capital growth. However, investors should only include such shares in their portfolio after due diligence.
Here are two ASX-listed shares that can be looked at for both growth and dividends:
Brickworks Ltd (ASX:BKW)
Brickworks is in the business of manufacturing, selling, and distributing building products in Australia. Brickworks is fast expanding with acquisitions in US. It recently acquired a brick distributor to boost its scale.
Brickworks owns a substantial number of shares of Washington H Soul Pattinson and Co Ltd and is benefiting from the long-term returns and growing dividend. The company also plans to become more diversified with its investments after the recent acquisition of Milton.
The industrial property trust joint venture with Goodman Group also holds substantial growth potential. The company’s industrial properties are witnessing strong boost driven by industry trends towards online shopping.
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The company has maintained a regular dividend payout since 1976. Brickworks recently announced a final dividend of 40 cents per share, implying a rise of 3%. It resulted in a full-year dividend raise of 3% to 59 cents per share. At its Tuesday’s closing price of AU$23.31, the trailing grossed-up dividend yield stands at 3.7%.
Highlights from FY21 results:
- Brickwork’s revenue declined 6% to AU$890 million.
- Earnings before interest, tax, depreciation and ammortisation (EBITDA) was up 61% to AU$453 million.
- Underlying net profit after tax (NPAT) from continuing operations stood at AU$285 million.
Shares of Brickworks have given a year-to-date (YTD) return of over 19%. The one-year return stands at nearly 23%.
Premier Investments Limited (ASX:PMV)
Premier Investment owns and operates a range of retail, consumer products and wholesale businesses. Some of the popular brands of the company include Smiggle, Peter Alexander, Just Jeans, Jay Jays, Portmans, Jacqui E, and Dotti.
Highlights of FY21 results:
- Total retail sales increased 18.7% to AU$1.44 billion.
- Online sales rose 36.4% to AU$300.7 million.
- Underlying earnings before interest and tax (EBIT) increased 88% to AU$351.9 million.
- Statutory profit rose 97.3%.
The company also holds significant investments in Breville Group and Myer Holdings.
In FY21, the company decided to increase the full-year dividend by 14.3% to AU$0.80 per share. At Tuesday’s closing price of AU$32.11, the grossed-up dividend yield stands at 3.5%.
Shares of the company have given a year-to-date (YTD) return of over 33%. The one-year return stands over 50%.
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