ASX shares that offer both growth and dividend income are ones that I regard as ‘the cream of the crop’. Receiving either is great, don’t get me wrong – but receiving both from one company is both rare and nothing short of wondrous for your long-term returns.
So here are two ASX shares that I think offer investors both growth and income on the markets today.
Ramsay Health Care Limited (ASX: RHC)
Ramsay is often overshadowed by its fellow healthcare giant CSL Limited (ASX: CSL), but I think this company has a lot to offer investors in its own right. Ramsay Health Care operates the largest network of private hospitals in Australia – an industry I expect to continue to benefit from tailwinds such as our ageing population.
The Ramsay share price has reflected this over the last few years. Back in 2010, RHC shares were around the $10 mark – a far cry from the current share price of $79.37 (at the time of writing).
Apart from being an ‘8-bagger’ over the past decade, Ramsay also holds the distinction of being one of only two ASX companies that have increased its dividend every year since 2000. This history of growth and dividend income from the company, combined with the long-term tailwinds of the healthcare sector, lead me to conclude Ramsay will continue to be a great share to have in one’s portfolio for the next ten years and beyond.
Vanguard Australian Shares Index ETF (ASX: VAS)
Investors that overlook index funds like VAS often don’t appreciate both the growth and income you can receive from merely holding this kind of investment in a passive manner. In just the last twelve months, VAS has returned 18.49% in capital growth in conjunction with 5.13% in dividend income – a total return of 23.62%.
Whilst I don’t think anyone invested in VAS can expect these kinds of numbers on a regular basis, it still shows both the growth and income potential of the ASX as a pure index. That’s why I think an Aussie market-tracking ETF like VAS is a great choice for any investor out there, but especially those who want to take the back seat in their investing journey.
I think both of these ASX shares offer investors both strong growth prospects along with substantial dividend income potential going forward. Although the markets are still near all-time highs, I still think these two shares offer a compelling investment case today.
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Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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.
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