The most attractive ASX shares to buy could be ones providing shareholders with a mixture of dividend payments and long-term growth.
It's great to own growing businesses, but I also like the idea of receiving passive income and seeing my bank account benefit as well.
I'm going to highlight two stocks that I like, which still have long-term growth prospects.
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Lovisa Holdings Ltd (ASX: LOV)
Lovisa is a retailer of affordable jewellery across a number of countries.
The company has at least 10 stores in the following markets: Australia, New Zealand, Singapore, Malaysia, South Africa, the UK, Ireland, France, Germany, Belgium, the Netherlands, Poland, Italy, the USA and Canada.
I think it's a smart strategy to have a presence in a number of markets because it gives the ASX share a number of locations it can grow in. The company can invest in whatever market it thinks it can unlock the best return. During FY26, its expansion efforts focused on the UK, Germany, the US and Canada.
During FY26, its store count grew by 10% year-over-year to 1,136 stores. That's a strong boost to the company's financials. In FY26, revenue rose 17.6% to $938.8 million, partly thanks to global comparable store sales growth of 2%.
The company's profit margins are growing as its scale increases, which is a great sign of the improving profitability of the business thanks to operating leverage. In FY26, gross profit grew 18.4% and operating profit (EBITDA) increased 20.9% – both of those metrics grew faster than revenue.
I believe the business has a very promising future by just adding more stores to its global network each year and ensuring positive comparable sales growth. In the first eight weeks of FY27, total sales increased 16.4% (on a constant currency basis) with comparable store sales growth of 3%.
The ASX share's dividend grows at a strong pace too. In FY26, the annual payout of 86 cents per share reflected year-over-year growth of 11.7%. At the time of writing, that translates into a dividend yield of 3.4%.
In the coming years, I expect its profit and dividend to grow at a double-digit rate, driven by store expansion.
Wesfarmers Ltd (ASX: WES)
The other ASX share I want to highlight is Wesfarmers, one of the ASX's oldest businesses.
It's now the owner of Bunnings, Kmart, Officeworks, Priceline, WesCEF (chemicals, energy and fertilisers) and others.
Wesfarmers has stated on its website that it aims to grow its dividend in line with profit growth, and it has delivered on that objective over the last five years.
The company's two key drivers are Bunnings and Kmart. During FY26, Bunnings Group (which includes Beaumont Tiles) grew earnings by 5.1% to $2.45 billion and Kmart Group earnings increased 6% to $1.1 billion.
In my view, both Bunnings and Kmart have a reputation for offering customers the best-value products in their respective hardware and general merchandise categories. Both businesses have proven they can grow earnings during volatile economic periods, as this decade has shown through the COVID period of 2020 and 2021, the high inflation of 2022 and 2023, and this additional era of higher inflation and elevated interest rates.
In the FY26 result, Wesfarmers grew revenue by 3.4% to $47.3 billion, underlying operating profit (EBIT) grew 7.3% to $4.5 billion, and underlying net profit after tax (NPAT) increased 8.3% to $2.87 billion. This allowed the business to hike its annual dividend per share by another 7.8%. Between FY21 and FY26, it grew its dividend by 24.7%.
At the time of writing, Wesfarmers has a grossed-up dividend yield of 4.1%, including franking credits.
I believe the market-leading positions of Bunnings and Kmart, as well as Wesfarmers' willingness to invest in new industries such as healthcare and lithium mining, can help drive the Wesfarmers share price and dividend higher in the coming years.
