- While some investors pick stocks for their growth prospects, others search for the ones with high dividend paying potential.
- There are some companies that deliver good returns in terms of both dividends and growth.
- Brickworks and Tabcorp are two shares which are lapped up by investors for both growth and dividends by ASX investors.
There are certain investors who look for stocks with high growth prospects. Similarly, income investors eye shares which pay regular dividends. However, there are companies which have a high total return (combined return of dividends and capital growth). Brickworks and Tabcorp are two shares which are lapped up by investors for both growth and dividends by ASX investors.
Brickworks Ltd (ASX:BKW)
Shares of Brickworks have given a year-to-date (YTD) return of 28%. The one-year return stands at over 34%. The grossed-up dividend yield stands at 3.4%. The company has increased its dividend each year since the year 1976. The company announced a final dividend of 40 cents per share, implying a rise of 3%. It resulted in the full-year dividend rise of 3% to 59 cents per share.
Brickworks is in the business of manufacturing, selling, and distributing building products in Australia.
- The company’s revenue fell 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 from continuing operations was AU$285 million.
- After including significant items and discontinued operations, the statutory profit was AU$239 million, down 20% from previous year.
Bapcor Ltd (ASX:BAP)
Shares of Bapcor has given a negative return of over 3% so far this year. The one-year return stands at over 12%. The company’s dividend rose by 14.3% to 20 cents per share in FY21, implying a grossed-up dividend yield of 3.8%.
Source: ©Miflippo | Megapixl.com
Bapcor provides accessories, automotive aftermarket parts. Amid the lack of international travel, the number of vehicle holidays has increased.
The strong demand resulted in strong growth of 20.4% to AU$1.76 billion. Pro forma net profit after tax (NPAT) went up 46.5% to AU$130.1 million.
In FY21, the company added 31 new company locations throughout its network. The company currently has around 1,100 locations throughout Australia, New Zealand and Asia.
RELATED ARTICLE: Why are these ASX property stocks worth a look - CIP, CQE, ADI
RELATED ARTICLE: Impacts of vaccination on businesses in Australia
RELATED ARTICLE: 10 ASX travel stocks to watch out for!