In the current market, it may seem hard to find stocks offering both income and growth at a reasonable price.
If that's true, these five stocks must be an exception to the rule because each appear to be offering compelling buying opportunities for long-term investors.
1. Altium Limited (ASX: ALU) develops and sells computer software for the design of electronic products. 34% of the group's revenues come from the Americas, 43% from Europe and 15% from China. Despite the need to invest in new business and maintain its competitive advantage, it offers a juicy 4.4% dividend to complement its growth potential. Bell Potter recently raised its target price on Altium ($3.25) 14% to $4.00 per share.
2. Shine Corporate Ltd (ASX: SHJ) is a law firm specialising in personal injury litigation. The company has substantial insider ownership and although it offers a dividend of just 1.4%, it makes up for it with its long-term growth potential. Indeed, the group is growing acquisitively as well as expanding its operations outside of personal injury.
3. Ardent Leisure Group (ASX: AAD) is the name behind AMF and KingPin Bowling, Dreamworld, Goodlife Health Clubs and much more. The group already plays a big role in Australia's leisure and entertainment market and has recently began an expansion into the U.S. through its Main Event business. It trades on a trailing 4.3% unfranked dividend yield.
4. iiNET Limited (ASX:IIN) is Australia's second-largest DSL internet service provider with over 1.8 million services nationwide. iiNET has grown its earnings per share strongly over the past five years and looks set to continue doing so into the foreseeable future. Its shares trade on a forecast dividend yield of 3.1% fully franked.
5. G8 Education Ltd (ASX: GEM) is a childcare centre owner and operator with approximately 420 centres in Australia and 18 in Singapore. Despite its aggressive rollup strategy, G8 is also capable of offering a great dividend yield, currently 3.3% fully franked. Although growth may be modest in coming years, at 21 times forecast earnings per share it appears a good long-term investment.
