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2 quality ASX 200 growth shares for every portfolio

I’m always on the lookout for quality S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) growth shares that are trading at attractive prices.

Shares that are in the ASX 200 are seen as reliable as they have already made a name for themselves in the industry they’re in.

ASX 200 shares that pay dividends that are growing at a fast pace and also have international growth plans could be worth investing in.

These are two of the ASX 200 growth shares I’m eyeing up at the moment:

REA Group Limited (ASX: REA)

REA Group owns Australia’s most popular real estate portal, realestate.com.au. Being the clear number one attracts the most potential buyers, which then attracts the most sellers and so on. It’s a pleasing loop.

The recent property market downturn has caused a bit of a sell-off of REA Group shares in recent months, but the company continues to report every quarter that revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) is growing at a pleasing double-digit pace.

Indeed, the house price declines may be forcing vendors to pay up for the more expensive advertisements to get their property sold.

I am particularly attracted to REA Group due to its various international investments in property sites in Asia and North America. Over time, these could become the biggest parts of REA Group due to the much larger populations of the respective regions.

REA Group is currently trading at under 30x FY19’s estimated earnings with a grossed-up dividend yield of 2%.

Costa Group Holdings Ltd (ASX: CGC)

Costa is Australia’s largest horticultural business, it grows avocados, tomatoes, mushrooms, berries and citrus fruit.

The company also has international operations with expanding plantings in China and North Africa. It is steadily becoming a major food player.

I like that the company is investing in yield-increasing ideas & assets, making bolt-on acquisitions of smaller farms, expanding plantings and occasionally making larger acquisitions.

Management believe Costa can grow underlying profit by low double-digit figures for the next three to five years. Compounding can be a powerful financial force if that prediction is correct.

Costa is currently trading at under 24x FY19’s estimated earnings with a grossed-up dividend yield of 2.8%.

Foolish takeaway

Both of these shares have come down a fair bit since reporting season, so the value we can get has definitely increased. I believe both of them will be very good growth shares over the next decade, but I’m picky with my entry price, so I’d like to buy shares at around 10% lower than the current prices.

Until then, I want to buy other high-quality growth shares trading at good long-term value such as one of these exciting ASX stocks which is growing profit every year due to the ageing Australian population.

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Motley Fool contributor Tristan Harrison owns shares of COSTA GRP FPO. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia has recommended REA 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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