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2 top ASX shares for under $10

Are you thinking about investing in some lower cost shares with upside? Look no further, here are two shares that will cost you under $10 each with some growth prospects and dividends. Both are from the consumer discretionary sector on the ASX, but that’s where the similarities end. One manages outlets predominantly in the fast food sector and the other is a well-known grower and processor of brand recognisable health foods. Read on for some ‘food’ for thought…

Collins Foods Ltd (ASX:CKF)

Collins Food is better known by its restaurant brands that include KFC (in Australia, Germany and the Netherlands) and Taco Bell, for which it is the franchisee. It also owns the remaining Sizzler restaurants in Australia.

With its share price closing yesterday at $8.29, Collins Foods has had a very good week with a lot of positive things to say in its FY19 results presentation. Key takeaways include revenue up 16.9% to $901.2 million, net debt is down, and EBITDA is up 20.3% to $113.7 million. There’s also a fully franked dividend of 19.5 cents per share (2.34% dividend yield). Investors will be very happy with the 42.93% growth in share price over the past 52 weeks and with new stores opening or in the pipeline, there’s reason to expect growth momentum to continue.

Select Harvests Limited (ASX:SHV)

Let’s talk about nuts. According to Australia’s Almond Board, both processors and growers are buoyant about the possibilities for a strong 2019 result. Growers have enjoyed the type of hot and dry conditions that tend to deliver excellent crops and the processors are estimating 93,000 tonnes of high-quality almonds as a result.

Select Harvests is a diversified health foods company operating a number of recognisable brands, including Allinga Farms and Sunsol. It is also one of the largest growers and processors of almonds in Australia and one of our largest exporters. With 2019 looking like an excellent year for the humble almond, it’s a good time to look at Select Harvests’ investment potential.

You can purchase Select Harvests shares today at $7.25 (at the time of writing), which is a modest 1.26% improvement in 1 year, although the price was as low as $5.05 back in October 2018. However, the share price has gradually improved since then to where it is today. You’ll get a fully franked dividend of 19 cents per share (a 2.65% dividend yield). With a bumper almond crop on the cards and a growing trend towards healthier foods, there’s plenty to like about this company.

For 5 other cheap growth stocks on the ASX, take a closer look below.

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Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Collins Foods 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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