The ASX200 (ASX: XJO) is a good place to find solid Australian blue chips that have a reliable level of earnings each year.
But to create good returns over time we also need growth from our shares because that's where the power of compounding comes into play.
Australia (and New Zealand) are quite small markets due to their populations, so I think a business needs to be expanding overseas for it to be worth investing in.
That's why I think these two ASX shares could be worth an investment:
A2 Milk Company Ltd (ASX: A2M)
The infant formula business' share price continues to get more attractive – it has fallen 26% since the end of July 2019 despite revealing revenue growth of 41.4% and net profit growth of 47% in FY19.
Worries about the FY20 earnings before interest, tax, depreciation and amortisation (EBITDA) profit margin and China are legitimate concerns, but the company continues to grow strongly in the huge Asian market and US growth is very promising with wider distribution.
The fact it has managed to turn such basic necessities into a premium product is very impressive and shows that it may be able to be successful with other products in the future.
It's now trading at only 25x FY21's estimated earnings
Brickworks Limited (ASX: BKW)
Brickworks has seen its share price fall due to declining conditions for the construction sector and a drop in the share price of its major investment holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).
But I think these factors combined make it a good time to consider investing in Brickworks. Its recent acquisitions in the US have opened up a huge potential market for Brickworks to expand in over the very long-term. Its 50% stake of the property portfolio with Goodman Group (ASX: GMG) is a very solid asset to provide consistent rental returns, and the Soul Patts investment has been and is a very good long-term choice.
When you take the Soul Patts and property assets at their book values, Brickworks looks very cheap.
Brickworks has maintained or grown its dividend for decades, so it's a solid income option with a grossed-up dividend yield of 4.75%.
Foolish takeaway
Both businesses are very good options in my opinion. For growth or total returns I think A2 Milk could be the best one to go for, but Brickworks would be a very good income option.
