Buying ASX shares for both growth and income isn't something that too many investors actively strive for in my experience. You'll hear "I'm a growth investor" or "I'm a dividend income investor' far more than "I go for growth and income", I'd wager.
But by not seeking the best of both worlds, you might be overlooking some potentially lucrative returns. There are many ASX shares that have made investors very wealthy with a combination of both growth and income.
So, with this in mind, here are 2 ASX shares that I think investors can reasonably expect to deliver both capital growth and dividend income going forward.
Ramsay Health Care Limited (ASX: RHC)
Ramsay Health Care isn't a favourite share of the income investor right now. This company used to have one of the best ASX dividend records around – 20 years of uninterrupted increases. Unfortunately, the COVID-19 crisis put an end to that this year and Ramsay has suspended its dividend payments until further notice.
Ramsay runs a network of private hospitals across Australia and a few other countries, including the United Kingdom and France. I think private healthcare is going to be playing an increasingly large role in the hospital network over the coming decade or two, given the demographic of our ageing population. Ramsay is well placed to capitalise on this trend, which should give this company a very long growth runway
I think Ramsay is still a top choice for both growth and income today. Yes, the company has suspended dividend payments. But I think this suspension won't last long, and indeed I think it was prudent at the time, given the uncertain path ahead for the economy. I don't think it will be too long until dividends resume and investors enjoy another strong streak of payout increases.
WAM Global Ltd (ASX: WGB)
WAM Global is a listed investment company (LIC) that aims to find undervalued growth opportunities from various share markets around the world. This company has been growing its dividends rapidly (including by 50% last year), even though it only started life in 2018. WAM Global's last interim dividend came in at 6 cents a share, which gives the LIC a trailing grossed-up dividend yield of 4.42% on current prices.
WAM Global is also well-poised for some nice capital gains down the road. Some of WAM Global's current top holdings include Amazon.com, Tencent, Costco and Activision Blizzard – all top-notch growth companies outside the realm of most ASX investors.
I think WAM Global's management team has shown, alongside WAM's other LICs like WAM Capital Ltd (ASX: WAM), that it knows how to grow wealth with a long-term mindset. Thus, I'm very confident in WAM Global today and in its future ability to provide both growth and income.
