2 ASX shares that could be buys for both growth and dividends

Brickworks and Bapcor are both options for dividends and growth.

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Some ASX shares are known for being growth-focused whilst others are picked because of their dividend yields.

The combined return of dividends and the capital growth is called the total return. A few companies may be able to generate good returns on both fronts of dividends and growth.

These two ASX shares are ones that may be able to deliver:

Bapcor Ltd (ASX: BAP)

Bapcor is a leading car parts business that operates under a number of different brands and businesses including Burson, Autobarn, Autopro, Truckline and Midas.

Current conditions have helped drive profit higher. The lack of international travel has led to more vehicle holidays, increasing the demand for Bapcor products because of higher wear and tear on vehicles. There has also been a strong market for second hand cars, which may mean a higher demand for replacement products. Retail conditions were also strong in FY21.

The strong demand led to revenue growth of 20.4% to $1.76 billion, pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 28.8% to $279.5 million and pro forma net profit after tax (NPAT) went up 46.5% $130.1 million.

It added a net 31 new company locations throughout its network over FY21. Combined with the 25% investment in Tye Soon (which added 60 locations), it now has around 1,100 locations throughout Australia, New Zealand and Asia.

The ASX share is investing to drive the long-term success of the ASX share. The new distribution warehouse at Tullamarine in Victoria has been completed with retail having successfully transferred into the facility and a new distribution centre for Queensland has been approved. It’s also investing in its ‘digital transformation’, including its new Autobarn e-commerce platform and business to business platforms in Australia, Thailand and New Zealand.

Bapcor’s dividend was increased by 14.3% to 20 cents per share in FY21. That equates to a grossed-up dividend yield of 3.8%.

Brickworks Limited (ASX: BKW)

Brickworks is an ASX share that has a few different segments.

It has a variety of building products including bricks, paving, masonry, roofing, precast and so on in Australia. The company also has brickmaking operations in the US after making a few acquisitions.

Brickworks has a 50% market share of an industrial property trust alongside Goodman Group (ASX: GMG) which is steadily building an impressive portfolio of buildings like distribution centres.

Finally, Brickworks owns a large shareholding of the investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Brickworks has owned these Soul Patts shares for decades.

Brickworks has maintained or increased its dividend every year since 1976.

The ASX share just reported its FY21 result, which included a final dividend of 40 cents per share, an increase of 3%. That brought the full year dividend to 59 cents per share, an increase of 3%.

In that FY21 result, whilst total revenue fell 6% to $890 million, underlying earnings before interest and tax (EBIT) increased 86% to $383 million and underlying net profit after tax (NPAT) jumped 95% to $285 million.

A key part of the profit growth came from the property trust value rising by another $184 million, helped by strong structural tailwinds. This included a $149 million of revaluation gains. After including debt, Brickworks’ share of the net assets was $911 million. The rapid growth in online shopping has increased the importance of well-located distribution hubs and “sophisticated supply chain solutions”.

The ASX share says that it’s in a strong position, with conservative gearing and a diversified portfolio of attractive assets.

At the current Brickworks share price, it has a grossed-up dividend yield of 3.4%.

Should you invest $1,000 in Bapcor right now?

Before you consider Bapcor, you'll want to hear this.

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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Bapcor, Brickworks, and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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