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2 ASX200 shares to buy for dividends and growth

The ASX 200 (ASX: XJO) could be a good place to find shares that offer dividends and growth.

There are some businesses in the ASX 200 that are large enough to offer a lot of safety, even through downturns, whilst having enough growth potential to offer good returns and dividend growth.

Here are two potential ideas:

Brickworks Limited (ASX: BKW) 

Brickworks is one of Australia’s leading construction material businesses with plenty of leading brands like Austral Bricks, Bristile Roofing and Auswest Timber.

The company has maintained or grown its dividend each year since 1976, which is one of the best dividend records on the ASX.

It has managed to achieve this thanks to several factors. First, the Australian building industry has been growing at a solid rate over the past few decades. However, sometimes there are cyclical lows.

That’s where the other two segments come in. Brickworks has a large investments holding which provides a stable earnings base, growing dividends and growing value for Brickworks.

It also has a land and development segment which looks to maximise the value of surplus land created by the building products business. It builds industrial properties owned with its partner, Goodman Group (ASX: GMG), and leases them out – generating good long-term rental revenue for Brickworks.

The expansion in the US brick market also unlocks a lot of potential growth for Brickworks as it’s a much larger market and ripe for further bolt-on acquisitions.

Brickworks has a grossed-up dividend yield of 4.6%.

Tassal Group Limited (ASX: TGR) 

Tassal is Australia’s leading fish business with its large salmon business, its wholesale fish business and the new prawn division which was recently acquired.

Australian fish is in increasing demand from healthier Aussie consumers and the Asian middle class wanting some quality Australian product.

Tassal has been steadily increasing its operating profit and its dividend this decade. I’m not advocating that investors take a large position in Tassal due to ‘wipeout’ risk from something like disease, but it could be a way to diversify dividends.

It currently has a grossed-up dividend yield of 6.6%.

Foolish takeaway

Brickworks would definitely be my preferred dividend share of the two. Its dividend reliability is almost unmatched on the ASX. The Brickworks yield is a bit lower than some other dividend shares, but I like its diversified assets and the US growth potential is very compelling.

Brickworks isn’t the only solid dividend share to think about, these top ASX income picks could also provide consistent cashflow for shareholders.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Brickworks. 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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