3 quality ASX shares I'd buy today for growth and income

These 3 quality ASX shares could be worth buying for growth and income.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

My favourite types of ASX shares are ones that are high-quality and can deliver long-term capital growth and income.

What this boils down to is identifying businesses with growing earnings that can provide higher sustainable dividend payments.

Here are three quality ASX share ideas for growth and income:

Bapcor Ltd (ASX: BAP)

Bapcor is Australasia's leading auto parts business. Its national Burson network is a leading provider of parts to mechanics around the country, indeed it has a target of delivering the part within two hours where possible.

Burson is the key earnings generator for Bapcor, it has created same store sales of 4% per annum over the past few years. Management also plan to roll out more stores over the next five years.

I like that its earnings are defensive, which should mean it can keep growing even if Australia's economy goes through a downturn. Bapcor's recent expansion into Asia has made me even more optimistic about its future.

It currently offers a grossed-up dividend yield of 3.7%.

Reece Ltd (ASX: REH)

Reece is Australia's leading bathroom and piping business. Most people would just think of Reece as a seller of baths, toilets and sinks – this has been a good sector for the last couple of decades with Australia's rising population and love of renovations.

However, there's a lot more to Reece these days. It is also a leader in civil works, irrigation piping and HVAC. It also recently made a US acquisition of a Reece-like business that operates in the southern US where the populations are growing at a good rate.

It currently has a grossed-up dividend yield of 2.9%.

MNF Group Ltd (ASX: MNF)

MNF Group is a leading voice over internet protocol (VoIP) business. A growing number of apps and programmes are using internet-powered voice products which allows businesses and organisations to provide a better service for a cheaper price.

MNF has a number of growth initiatives that could boost profit in future years, for example it is trying to gain traction with its baby boomer regional telco brand Pennytel and it recently made a Singapore-based acquisition which could mean MNF can service its Australian clients in Singapore too.

Foolish takeaway

All three shares can generate earnings growth for at least several years to come and are paying shareholders a growing stream of income.

Motley Fool contributor Tristan Harrison owns shares of Bapcor. The Motley Fool Australia owns shares of and has recommended Bapcor and MNF 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.

More on Growth Shares

a happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

Here are the top five ASX 200 shares in Macquarie's model growth portfolio

These ASX 200 shares are highly rated by analysts at Macquarie.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX shares to buy in 2024 and hold for the next 10 years

Analysts think these top shares are in the buy zone right now.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Growth Shares

4 ASX growth shares I think will benefit from interest rate cuts in 2024

Not only will home loan holders rejoice, investors of these stocks could also be yelling with joy when the Reserve…

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Growth Shares

3 of the best ASX growth shares to buy now

Analysts see plenty of upside for these buy-rated shares.

Read more »

A man and woman in an office look at a laptop and discuss investing, budget strategies or other financial concepts
Growth Shares

Here's why analysts love these buy-rated ASX 200 growth shares

There's a reason analysts are feeling bullish about these companies.

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Growth Shares

Big returns could be coming for high-flying Lovisa shares

Morgans doesn't believe it is too late to snap up this hot stock.

Read more »

Smiling young parents with their daughter dream of success.
Growth Shares

Why these ASX 200 growth shares could be top buys now

Analysts are feeling bullish about these growth stocks. Let’s see what they’re saying.

Read more »

Concept image of a man in a suit with his chest on fire.
Growth Shares

Ignore the noise and buy this hot ASX growth stock

A recent pullback may have created a buying opportunity according to Bell Potter.

Read more »