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

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.

These aren’t the only three shares generating growth and income for investors, these top stocks are also worth considering for your portfolio.

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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.

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