ASX shares look like a good place to invest $6,500 in November 2023 because of the ability to achieve both capital growth and dividend income.
I'm not going to suggest investing in the ASX's biggest blue chips because I'm not sure whether they can deliver strong long-term growth, even if the dividend yields are appealing.
Instead, I'm going to outline three ASX shares that could achieve solid capital growth from an investment of $6,500 between them.
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Lovisa Holdings Ltd (ASX: LOV)
Lovisa is an ASX retail share that sells affordable jewellery aimed at younger shoppers.
It's growing its global store count at a really impressive rate. In FY23, it added 172 new stores, ending the financial year at 801 stores.
In the US alone, it added 72 stores, finishing the financial year with 190 stores. Certainly, I think there is enormous growth potential in the US market, considering there were 168 stores in Australia at the end of FY23 with less than a tenth of the population of the US.
Lovisa has recently entered a number of markets including Hong Kong, Spain, Taiwan, Morocco, Poland, and Italy.
In the next month, it's going to open its first stores in Vietnam and China, both of which have huge populations.
In the first 20 weeks of FY24, the ASX share's total sales were up 17% year on year, showing that its store rollout is helping scale which, in turn, can help overall profit.
According to projections on Commsec, the Lovisa share price is valued at 19 times FY25's estimated earnings.
Vaneck Morningstar Wide Moat ETF (ASX: MOAT)
This is a high-quality exchange-traded fund (ETF) focused on investing in companies with strong competitive advantages that are expected to endure.
As an example, take the company Walt Disney. It has been producing hit movies for many decades and owns numerous brands that can help it make billions of dollars for years to come, including the Marvel and Star Wars franchises. It also makes lots of money from its Disney parks, merchandise, and so on.
Disney is currently the biggest position in the portfolio, but there are others like Alphabet (Google), Salesforce.com, and Nike.
The strengthening Aussie dollar also makes it more attractive to invest in US shares. The investment team only buys shares for this portfolio when they think they are good value. This is a good strategy in my view.
The ASX ETF has delivered solid long-term performance, though past returns are not a guarantee of future results.
Brickworks Limited (ASX: BKW)
Brickworks is one of the largest building products manufacturers in Australia. It's the largest brickmaker in the country and is involved with a number of other products like paving, masonry, roofing, and cement.
With the huge population growth that Australia is seeing, there could be very strong growth in demand for the company's products.
I like Brickwork's exposure to industrial property which, thanks to limited supply, is seeing strong underlying rental income growth.
Large warehouses are being built on the company's land through a property trust jointly owned by Brickworks and commercial property partner Goodman Group (ASX: GMG). This is unlocking development profits and more rental income.
The Brickworks share price has dropped more than 10% since September 2023, meaning investors can get better value today than before. Whatever happens next, I think Brickworks' asset base – including its investments division – can provide protection and cash flow for shareholders.
