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3 great growth shares for younger investors

If you’re investing with a time-frame of more than 10 years then it’s almost definitely worth aiming for growth over income.

The most promising growth companies will often pay out a smaller percentage of their profits as a dividend whilst having good plans to grow the company over the coming years.

The three companies below could have the perfect combination of potential growth and income for long-term investors:

Costa Group Holdings Ltd (ASX: CGC)

Costa is one of Australia’s largest food producers with a market capitalisation of $1.44 billion. It grows a wide variety of fresh produce including citrus fruit, tomatoes, berries, mushrooms and avocadoes.

Management are expanding Costa’s growing capacity in Australia, China and Morocco. The planned growth could provide healthy returns over the next few years.

Costa is trading at 56x FY16’s earnings with a grossed-up dividend yield of 3.17%.

TPG Telecom Ltd (ASX: TPM)

TPG is one of Australia’s largest telecommunications providers with a market capitalisation of $5.46 billion.

Its mobile business could soon rapidly explode thanks to its spectrum ownership in Australia and Singapore. Management have done a great job of growing the business to its current size and there’s every chance that its latest moves will provide further profit growth.

TPG is trading at 13x FY17’s estimated earnings with a grossed-up dividend yield of 3.75%.

Hansen Technologies Limited (ASX: HSN)

Hansen is a software and billing provider to a number of utility and telecommunications businesses around the world. It currently has a market capitalisation of $635 million.

The Hansen share price has fallen by 26% since October 2016, which gives investors a good chance to buy into this expanding, defensive business at a beaten-down price.

Hansen is currently trading at 24x FY16’s earnings with a grossed-up dividend yield of 2.89%.

Foolish takeaway

TPG is clearly trading at the cheapest earnings multiple and may be the best value, but the other two have their appealing factors as well. I’d be happy to invest in all three at the current prices for the long-term, though I have my eye on Costa the most.

For other great growth stocks that offer good capital and income growth, you should read this report on our latest recommendations.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison has no position in any stocks mentioned. The Motley Fool Australia owns shares of Hansen Technologies and TPG Telecom 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.

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