When looking for investments it’s always nice to find shares that pay both a good dividend and offer stable earnings growth. Not only will investors enjoy the capital gains from share price growth, but they will get a steady income stream coming from the dividends. Two such shares that provide shareholders exactly this are ASX Limited and Retail Food Group Limited.

The shares of ASX Ltd (ASX: ASX), operator of the Australian Stock Exchange, are currently yielding a fully-franked dividend of 4.9%. As the company holds a monopoly on share-clearing for at least the next five years, the competitive advantages it possesses should translate into consistent earnings and a sustainable dividend for a good number of years to come.

Like the majority of shares trading on the market right now, they’ve also been caught up in the recent sell-off. The company’s shares last closed at $39.06 which is almost 14% off its 52-week high of $45.37. This gives investors a chance to get hold of the shares of a great Australian company with a real competitive advantage and strong dividend, at a very reasonable price.

Retail Food Group Limited (ASX: RFG) offers an even greater dividend that is currently yielding 5.4%, and once again it is fully franked. Analysts are expecting that the dividend will continue to grow by almost 10% per annum and earnings by 15% per annum over the next two years. This makes Retail Food Group a very attractive investment for both growth and income investors.

Because Retail Food Group franchises a wide range of well-known brands such as Gloria Jean’s, Donut King, Crust Gourmet Pizza, and Michel’s Patisserie, it can count on a steady and predictable stream of revenue which is a great trait for a company to have.

The shares are trading at a forward PE Ratio of just 10.73, which is a significant discount to the rest of the consumer discretionary industry which trades at an average forward PE ratio of 19.88. When you factor in this it makes for an incredibly appealing investment.

Foolish takeaway

Finding shares that offer potential capital gains through earnings growth and strong fully-franked dividends can make for very rewarding investments.

NEW: The Motley Fool's Top Fully Franked Dividend Share For 2016

This "dirt cheap" company. is growing like gangbusters, and trading on a 5.6% dividend yield, FULLY FRANKED (8% gross). With interest rates set to stay at these low levels for years to come, for income-hungry investors, including SMSFs, this ASX company could be the "Holy Grail" of dividend plays for 2016. Click here to gain access to this comprehensive FREE investment report, including the name of this fast growing ASX dividend share. No credit card required.

OUR #1 DIVIDEND PICK FOR 2016...

Forget BHP and Woolworths. This "dirt cheap" company is growing like gangbusters, and trading on a 5.6% dividend yield, FULLY FRANKED (8% gross). With interest rates set to stay at these low levels for years to come, for hungry investors, including SMSFs, this ASX company could be the "holy grail" of dividend plays for 2016.

Enter your email below to discover the name, code and a full investment analysis in our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2016.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool contributor James Mickleboro has no financial interest in any company mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia owns shares of Retail Food Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.