I think the best of both worlds is when an S&P/ASX 200 Index (ASX: XJO) share can provide growth and income.
That's the power of ASX shares – they can deliver some of the profits generated to shareholders in the form of cash payments, while share price growth can come about from longer-term earnings growth.
The two ASX 200 shares I'm about to highlight have both delivered excellent long-term results for investors, and I'm expecting more in the next few years.
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JB Hi-Fi Ltd (ASX: JBH)
JB Hi-Fi shares have more than doubled over the last two years as the market became willing to pay a higher price-earnings (P/E) ratio for the business.
It sells a wide array of electronic devices and appliances that seem essential to modern life, such as smartphones, tablets, computers, and smartwatches.
With Australia's growing population and the country becoming increasingly digital, the ASX 200 share's sales are benefiting.
In FY25, sales grew 10%, underlying operating profit (EBIT) rose 9.4%, and underlying net profit grew 8.5%.
The business also decided to increase its annual dividend per share to $2.75, representing a 5.4% increase year over year. At the current JB Hi-Fi share price, that represents a grossed-up dividend yield of 3.8%, including franking credits. It also declared a special dividend of $1 per share in FY25.
The company decided to increase its dividend payout ratio from 65% to a range of between 70% to 80% of net profit from FY26, suggesting larger dividends are likely in the coming years.
In a trading update for the first quarter of FY26, JB Hi-Fi Australia sales rose 6%, JB Hi-Fi New Zealand sales were up 39.3%, The Good Guys sales were up 2.5%, and E&S sales were up 4.1%. I think this bodes well for further profit and dividend growth in FY26.
Breville Group Ltd (ASX: BRG)
Breville is one of the world's leading coffee machine makers with a number of brands, including Breville, Lelit, Baratza, and Sage. It also has a coffee beans business called Beanz.
While this is not a high-flying technology business, it's producing pleasing long-term earnings growth as at-home coffee consumption grows in core markets and new geographies. I'm excited to see what Breville can achieve following its expansion in China, the Middle East, and South Korea.
The ASX 200 share's financial performance has been strong – in FY25 alone, revenue increased 10.9%, net profit went up 14.6%, and the dividend per share was hiked by 12.1%.
If the business can continue growing its net profit at an average of around 10% per year (or more), then it could be a very appealing long-term investment as coffee consumption increases around the world.
Its FY25 payout translates into a grossed-up dividend yield of 1.8%, including franking credits. I believe the dividend growth can track the level of earnings growth in the next few years.
