How you can generate income and growth with these 3 shares

Sometimes investing for income doesn’t mean you have to lose the ability to grow your capital as well.

Here are three stocks with good prospects of generating both income and growth for your portfolio:

Auckland International Airport Ltd (ASX: AIA)

New Zealand’s largest airport recently reported a 17% increase in half year profits and benefits from the increase in tourism in the country. I like its wide moat which is entrenched by the fact that it essentially has a monopoly over air travel to Auckland. It also has a large commercial property portfolio which can be further developed to diversify its revenue streams.

Auckland Airport is currently trading at a dividend yield of 3.4%.

Bapcor Ltd (ASX: BAP)

The automotive parts supplier is a dominant player in an industry that has proved resilient to the winds of change. The population of cars in Australia and New Zealand continues to grow and they all need spare parts for repairs and maintenance.  Due to some smart acquisitions in the past, Bapcor essentially covers all aspects of the after-purchase market from wholesale to retail and service. Its scale and brand presence also make it difficult for new competitors to take up market share.

Bapcor is current trading at a dividend yield of 2.2%.

Suncorp Group Ltd (ASX: SUN)

The Queensland based insurer has been rated a buy recently by top brokers Credit Suisse despite weaker-than-expected results. It’s one of the quirks of investing in insurance stocks as an adverse claims experience lowers profits which results in insurance companies raising premiums and leading to higher future profits when the claims normalise. Suncorp’s banking business also gives it a more diverse source of income compared to its competitors Insurance Australia Group Ltd (ASX: IAG) and QBE Insurance Group Ltd (ASX: QBE).

Suncorp is currently trading at a dividend yield of 5.2%.

If you are looking for more growth investing ideas, our report below is a good place to start. These are the big ideas of tomorrow that billionaires are investing in.

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Motley Fool contributor Kevin Gandiya has no position in any of the stocks mentioned.

You can follow Kevin on Twitter @KevinGandiya

The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia owns shares of Insurance Australia 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 Scott Phillips.

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