We all want to have a high-performing portfolio. When picking shares, sometimes it’s a case of choosing between yield and growth. That’s not the case with these 2 companies, which are delivering growing income and achieving capital growth at the same time.
Transurban Group (ASX: TCL)
Transurban develops, manages and maintains toll-road networks in Melbourne, Sydney and Brisbane. The company has also expanded to the United States and more recently Canada.
The performance? Over the last 10 years, shareholders have received a total return of 14.4% per annum. On the income side, since 2009, distributions have grown by almost 11% per year on average.
Transurban has major projects underway like the West Gate Tunnel Project in Melbourne, expected to be completed in 2022 which bodes well for future growth in earnings. Shares currently trade on a yield of 4.6%. In FY19, the distribution is forecast to increase by another 8%.
Event Hospitality and Entertainment Ltd (ASX: EVT)
Event Hospitality operates cinemas, resorts and hotels across Australia, New Zealand and Germany.
The performance? Over the last 10 years, Event has provided investors with a total return of 18.5% per annum. Not bad for a relatively boring cinema and hotel business!
As for income, the company has increased its dividend by 6.1% per annum, on average, for the last 10 years. What’s more, Event kept increasing its dividend throughout the tough GFC years.
Event’s Hotels business has been performing well and the company is focused on reducing costs. The outlook for its cinema operations is less clear, with a weak line-up of films weighing on earnings. Shares currently trade on a yield of 4%, or 5.7% grossed-up.
I think both businesses are worth a look at current prices. This highlights that growth and income don’t have to come from different companies. It’s just two examples of the many stocks which have shown strong performance as well as providing a regularly increasing dividend for shareholders.
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Motley Fool contributor Dave Gow owns shares of Event Hospitality & Entertainment and Transurban Group. The Motley Fool Australia owns shares of and has recommended Event Hospitality & Entertainment and Transurban Group. 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.