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2 growth + dividend shares I’d buy for retirement

TPG Telecom Ltd (ASX: TPM) and Integrated Research Limited (ASX: IRI) appear good long-term buy and holds for income and growth.

TPG Telecom

TPG and Vocus Group Ltd (ASX: VOC) have already made it a backs to the wall job for the mighty Telstra Corporation Ltd (ASX: TLS) by offering ridiculously cheap broadband services. TPG and Vocus have grown ferociously over the past five years, both by acquiring other businesses and getting more internet subscribers on board.

However, TPG is now taking it to Telstra with its push into the mobile market, offering affordable plans to a growing base of customers. What’s more, TPG is expanding into Singapore.

TPG ticks a lot of boxes for me, including excellent management, a proven strategy and, of course, a decent dividend. At today’s share price, it offers a 2.4% fully franked dividend yield. However, its payout is expected to grow over the coming years.

Integrated Research

You may not have heard of Integrated Research because it’s small(ish) and works in a complex field of technology. Frankly, that’s fine by me because being small and out of the news means it is still a hidden gem and looks like a good buy. As they say, ‘if it’s in the press, it’s in the price’. Meaning, popular shares are generally priced very richly.

The most appealing trait of Integrated Research is the ‘sticky’ nature of its business. It provides performance monitoring and diagnostic software for big business. Typically, the computer systems are integral to their businesses and by extension, so too is Integrated Research’s software.

Last night, the $490 million company reported a 10% increase in revenue and 25% jump in profit. It will also pay a half year dividend of 3 cents per share (mostly franked) in April. Like TPG, Integrated Research’s 2.3% partially franked dividend is not that big. However, it’s the expected growth in that payment which is impressive.

Foolish Takeaway

If you are in or approaching retirement, I do not believe you should sacrifice growth for a decent dividend. Both of these companies offer excellent growth prospects and pay a dividend which is expected to increase over time.

Finding companies that can offer big dividends and growth prospects is the goal of every long-term investor, but they are rare. So when they come along, you should snap them up.

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen encourages your feedback. You can follow him on Twitter @OwenRask.

The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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