ASX shares capable of both capital growth and dividend income are a rare combination sought by many investors.
Sure, one could pick up a big bank to reap income, but they have no massive prospect of growth in a saturated market.
Conversely, a high-flying tech company might do the trick for future growth, but very rarely do they pay out a decent dividend. Any free cash is ploughed back into the business to fuel further growth.
In the current climate of a stressed economy from rising interest rates, stocks with the golden combination have become even rarer.
Fortunately for The Motley Fool readers, one expert named two such ASX shares they could buy right now:
'Well managed' business giving plenty back to investors
The Silk Logistics Holdings Ltd (ASX: SLH) share price has remarkably gained more than 20% over the past 12 months, during a period when most non-mining stocks tanked.
What's more, it already pays out a dividend yield of 4.7%.
Morgans investment advisor Jabin Hallihan reckons the stock price could head up 54% from the current level of around $2.47 while paying out even more dividend.
"Our valuation is $3.80 a share," Hallihan told The Bull.
"We forecast a gross dividend yield of about 5%."
The business is "well managed", he added, and presented impressively during reporting season.
"The integrated logistics provider posted revenue of $253.6 million in the first half of fiscal year 2023, an increase of 39.1% on the prior corresponding period," Hallihan said.
"Underlying net profit after tax of $9.8 million represented an increase of 32.4%."
The Morgans team is expecting Silk Logistics to rake in between $480 million and $500 million for the full financial year.
'A significant development' for lithium business
Mining services provider Mineral Resources Ltd (ASX: MIN) digs up all sorts of minerals, but its involvement in lithium production has seen its share price rocket 83% over the past year.
But the stock has remained flat over the past month due to a lukewarm reporting season.
Hallihan is still bullish on the Western Australian company.
"While the first half 2023 result didn't meet consensus expectations, we expect a stronger second half as we anticipate lower costs."
He noted the recently announced budding agreements with the US company Albemarle Corporation (NYSE: ALB).
"We expect an equal joint venture conversion agreement to obtain a capacity of producing 100,000 tonnes of lithium chemicals a year from 2025.
"It's a significant development amid increasing demand for lithium."
The Morgans team has placed its fair valuation for Mineral Resources at $102, suggesting a 16.4% upside from the current level.
The dividend yield for Mineral Resources stands at 2.5% fully franked.
