ASX shares that can give their owners both significant capital returns on top of a substantial and growing dividend are a rare but lucrative breed. These ‘best of both worlds’ stocks can suit the needs of most investors out there and often make great candidates for a ‘core’ holding in a successful investors’ portfolio.
So with that said, here are two ASX shares that I think fall under this category. Both have an impressive history of outperformance whilst delivering strong and rising income for their shareholders.
Mirvac Group (ASX: MGR)
Mirvac is a REIT (real estate investment trust) that invests in property assets across the country. These include shopping centres, commercial offices, business parks and industrial properties. Being a REIT, Mirvac is obliged to pass on almost all of its rental income as dividend distributions to its shareholders, which translates into MGR’s current yield of 3.61%.
However, Mirvac has also demonstrated an ability to pick winning properties that have also delivered substantial capital gains over time. This in part explains why MGR shares have rewarded owners with a 45% capital gain over 2019 so far, on top of a dividend pay rise.
For these reasons, I think this stock is a great ASX candidate for both top growth and income going forward.
Ramsay Health Care Limited (ASX: RHC)
Ramsay is another fantastic company that has managed to deliver stellar capital growth on top of rising shareholder payouts. It’s my opinion that healthcare is one of the best industries to invest in for the long-term, and Ramsay’s growing network of private hospitals make it one of the best ASX healthcare stocks out there.
Ramsay is also one of the only ASX companies to have consistently raised its dividend payout every year of this century so far (even through the GFC), so income gets the tick. Throw in year-to-date share price gains of 21% and we can also see that Ramsay has a lot of growth under the hood as well – double tick.
These two ASX shares have both, in my view, demonstrated that they have the ability to offer shareholders significant growth on top of an ability to pay generous and rising dividend income. Whilst both Mirvac and Ramsay are not looking too cheap this week, I reckon both are well worth keeping an eye on.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care 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.