Investors of different ages typically have different objectives, so people in their 50s may not be searching for maximum capital growth. Instead, ASX stocks that offer a mixture of growth and dividends could be appealing.
The two companies below have demonstrated a track record of achieving good shareholder returns. I like seeing companies grow their payouts because it means investors are protected against inflation and receive cash payments for no effort.
I'm already a shareholder in these businesses, and I plan to buy more this year. Here's why I think they're so attractive right now.
MFF Capital Investments Ltd (ASX: MFF)
This investment company is led by Chris Mackay, the co-founder of Magellan Financial Group Ltd (ASX: MFG).
It recently announced the acquisition of Montaka, a funds management business. This gives MFF an operating business with potential for growth and access to additional high-quality fund managers.
Currently, most of the ASX stock's underlying value relates to its global share portfolio, which includes Amazon, Alphabet, Mastercard, Visa, American Express, Meta Platforms, Bank of America and Microsoft.
The company, which has acted as a listed investment company (LIC), is able to pay a growing dividend from its investment returns. It has grown its annual ordinary dividend per share each year since 2018 and plans to pay an annual dividend per share of 16 cents in FY25. That translates into a grossed-up dividend yield of 4.8%, including franking credits.
It was trading at a 10% discount to the pre-tax net tangible assets (NTA) of $5.26 on 24 January 2025.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
This is one of my favourite names for generating both dividends and capital growth.
Soul Patts is an investment conglomerate that has been publicly listed for 120 years. It has steadily invested in its portfolio over the last few decades, and now has a presence in multiple sectors.
Some of the main exposures in the ASX stock's portfolio include telecommunications, resources, financial services, agriculture, swimming schools and credit/bonds.
Soul Patts receives a stream of cash flow from its portfolio in the form of dividends, distributions, and interest. With these growing funds, the ASX stock has been able to pay a rising dividend and invest the retained money in new opportunities.
For example, one of its recent moves in the last few years has been to take full ownership of Ampcontrol, a business that provides electrical and control solutions for the energy, infrastructure and resource industries.
Soul Patts has grown its annual ordinary dividend every year since 2000 and currently offers a grossed-up dividend yield of around 4%, including franking credits.
