The ASX200 has gone up by 20% since the start of the year, not including dividends.
Nearly all of the blue chips like BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL) and Commonwealth Bank of Australia (ASX: CBA) are trading fairly close to their 2019 highs.
I don't think it's the right time to be buying blue chips. I think we need to look further down the market capitalisation list to find shares offering growth with dividends, like these three:
Costa Group Holdings Ltd (ASX: CGC)
Costa is Australia's largest horticultural business, it grows citrus fruit, berries, avocados, mushrooms and tomatoes.
The company has faced a difficult 12 months with demand (and therefore price) lower for the food produced from some of its segments, whilst fruit flies near a citrus farm and crumbly berries have also detracted from earnings.
However, Costa is doing a lot of good things for future growth by investing in productivity improvements, expanding its plantations and taking a bigger stake of its North African business.
Costa is well positioned to keep growing profit into the future, particularly if food scarcity increases over the next decade.
It has a trailing grossed-up dividend yield of 3.4%.
Bapcor Ltd (ASX: BAP)
Bapcor is the leading auto parts business in Australia and New Zealand.
Car parts is pretty defensive industry. Cars can break down at any point in the economic cycle and people are more likely get a part rather than a new car in a downturn.
Over the past few years Bapcor has impressively increased its store network of Bursons and Autobarns whilst growing the overall operating profit margin and making very useful bolt-on acquisitions like the NZ business and recently a truck parts group.
A real underrated part of the Bapcor story is the potential growth in Asia. It's slowly opening Burson stores in Thailand. If this works profitably then it could open large new markets to Bapcor and mean continuing good profit growth over the next five or more years.
Bapcor has a trailing grossed-up dividend yield of 3.4%.
Bingo Industries Ltd (ASX: BIN)
Bingo is a waste management business which has seen its share price hurt because of lower construction activity.
However, that downturn isn't likely to last forever. The RBA thinks construction could turn around in the later stages of 2020. This could mean a return to growth for Bingo next year.
Bingo has made a smart acquisition with Dial A Dump Industries and it's winning new contracts which will improve its network effects.
As cities get bigger and bigger there's going to be more waste for Bingo to deal with, which should mean more earnings. It could also be a long-term beneficiary from a shift to more recycling being done in Australia.
Bingo has a trailing grossed-up dividend yield of 2.4%.
Foolish takeaway
These are certainly not 'dividend' shares, but they're attractively priced mid-cap shares that have good growth potential and they're also rewarding shareholders with some of profit each year through dividends.
If I had to pick one it would be Costa because of its global growth plans in Asia and North Africa. Food demand will keep growing as long as the global population goes up.
