2 quality ASX 200 shares tipped to outperform

Leading experts say these two ASX 200 shares are on the growth path.

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Key points

  • Steadfast and REA are highlighted as potential outperformers in the ASX 200.
  • REA is recommended for its strong digital real estate platform and potential growth through international expansion, with recent share price declines seen as a buying opportunity.
  • Steadfast is noted for its leading position in insurance broking, steady growth through acquisitions, and impressive financial results, with expectations for continued growth.

On the hunt for a few dividend-paying S&P/ASX 200 Index (ASX: XJO) shares that look well-placed to outperform?

Then you might want to have a look into insurance brokerage company Steadfast Group Ltd (ASX: SDF) and online real estate advertising company REA Group Ltd (ASX: REA).

Steadfast shares are down 0.3% in afternoon trade today, changing hands for $6.02 apiece. That sees the share price up 8.5% since this time last year. Steadfast shares also trade on a fully franked 3.2% trailing dividend yield.

REA Group shares are down 1.2% at this same time, trading for $221.31 each. The REA Group share price is up 4.5% in 12 months. The ASX 200 share also trades on a fully franked 1.1% trailing dividend yield.

And this week, two leading experts tipped both companies to outperform in the months ahead (courtesy of The Bull).

Here's why.

Should you buy these quality ASX 200 shares today?

"REA Group provides Australia's leading digital real estate platform, with dominant market share and strong brand recognition," said Morgans' Damien Nguyen, who has a buy recommendation on the ASX 200 share.

"Its core Australian site benefits from an appealing and dynamic network and consistent product innovation," he added. "International expansion, particularly in India, adds a long runway for growth."

And Nguyen pointed to the 15.8% decline in the REA Group share price (at current levels) as an opportunity to buy the dip on this quality ASX 200 share.

"The shares have fallen from $263.16 on August 22 to trade at $225.80 on October 2," he said. "We view the current price as an attractive entry point for long term investors seeking quality growth exposure."

Which brings us to Steadfast Group.

"Steadfast is the biggest general insurance broking and underwriting agency in Australasia, and is starting to grow across the globe," said Catapult Wealth's Blake Halligan, who has a buy recommendation on the ASX 200 share.

"The company is steadily growing organically and via acquisitions," he noted, adding that Steadfast "can benefit from increasing insurance premiums without taking on the underlying insurance risk".

Steadfast reported its full-year FY 2025 results on 28 August.

Drilling into those results, Halligan said:

Underlying net profit after tax of $295.5 million in full year 2025 was up 17.2% on the prior corresponding period. The final fully franked dividend of 11.7 cents was up 14%. The company has forecast underlying net profit after tax of between $315 million and $325 million in fiscal year 2026.

And Halligan expects more growth ahead for the ASX 200 share.

"We like the company's outlook," he concluded.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Steadfast Group. The Motley Fool Australia has positions in and has recommended Steadfast Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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