ASX shares that grow earnings have the ability to give investors both share price growth and good dividends.
I'm not going to talk about the biggest businesses in Australia like Westpac Banking Corp (ASX: WBC) or National Australia Bank Ltd (ASX: NAB) because they're already huge businesses and have relatively slow growth prospects.
Instead, I'll highlight businesses I believe have the potential to grow earnings faster than the major banks or miners over the longer-term. Let's get into it.
Universal Store Holdings Ltd (ASX: UNI)
Universal Store says it owns a portfolio of premium youth fashion brands. Its businesses include Universal Store, Perfect Stranger and CTC (under the THRILLS and Worship brands). It has more than 112 physical stores across Australia, as well as its online channels.
The company's strategy is to grow and develop its brands and retail formats to deliver a "carefully curated selection of on-trend apparel products to a target 16-to-35 year-old fashion focused customer."
Universal Store delivered pleasing growth in FY25, with group sales of $333.3 million (up 15.5%) year-over-year. The Universal Store sales rose 15% to $280.9 million with like-for-like sales growth of 13%. Perfect Stranger sales increased by 83.1% to $25.5 million and like-for-like sales increased by 25.5%.
Its product range is clearly resonating with customers, with strong growth last financial year, and group sales were up 17.2% in the seven weeks to 17 August 2025. The company has good momentum and plans to open between 11 to 17 new stores across the business.
In FY25, its underlying net profit after tax grew by 15.2% year-over-year and this helped fund an 8.5% higher dividend per share of 35.5 cents. At the time of writing, the business offers a grossed-up dividend yield of 6%, including franking credits.
I'm expecting Perfect Stranger to help drive the company to higher, strong earnings growth and dividends.
Propel Funeral Partners Ltd (ASX: PFP)
Propel is the second-largest funeral provider in Australia and New Zealand. It has just over 200 locations, including 41 cremation facilities and nine cemeteries.
The business is exposed to unfortunate but strong tailwinds because there is an increasing number of deaths. The number of deaths is the most significant driver of revenue for the industry.
Propel notes that Australian death volumes are forecast to increase by 2.8% per year between 2025 to 2035 and then rise at a pace of 2.4% between 2036 to 2045.
On top of that, Propel is experiencing a rising average revenue per funeral, which saw comparable growth of 2.3% in FY25, in line with inflation.
I think both the funeral volumes and the average revenue per funeral are likely to rise in the coming years, helping the dividends and growth.
It currently has a grossed-up dividend yield of 4.1%, including franking credits.
