For the record I don't have any kids, but if I did I'd buy Macquarie Group Ltd (ASX: MQG) shares, Cochlear Limited (ASX: COH) shares and Vocus Group Ltd (ASX: VOC) shares for my kids at today's prices.
Macquarie
Macquarie Group is Australia's largest investment bank. In the finance community, Macquarie is seen as the pre-eminent headquarters of Australian finance. Naturally, the CEO of the 'Macquarie millionaire factory' earned more than $18 million in 2016 — by comparison, the Commonwealth Bank of Australia (ASX: CBA) CEO earned 'only' $12.3 million!
The reason Macquarie is held in such high esteem is because it's an impressive business. Its operations stretch from Australian stock research to US infrastructure management and airplane financing. Make no mistake, the bank's share price will rise and fall dramatically in-line with financial markets but if you are in it for the long run I think Macquarie will be a rewarding investment. It is forecast to pay a partially franked 4.7% dividend in the year ahead.
Cochlear
Hundreds of thousands of people around the globe can hear today because Cochlear implanted them with a hearing aid device years ago. Cochlear is the market leader of implantable hearing aid devices and accessories. Like Macquarie, the Cochlear share price has had some steep ups and downs since the GFC in 2009.
However, with most of its revenue coming from overseas markets and a strong brand, Cochlear appears primed for more modest long-term growth, in my opinion. Its shares don't come cheap but offer a 2% franked dividend.
Vocus Group
Vocus is the name behind Dodo, Eftel, Primus, Amcom, NextGen and more. The $2.6 billion telecommunications company has an extensive fibre optic network, connecting Australia to Asia and beyond.
Vocus' retail brands operate in a competitive market, against the likes of TPG Telecom Ltd (ASX: TPM) and Telstra Corporation Ltd (ASX: TLS). Further, the company's share price recently fell hard following a management shake-up and as a result of valuation concerns.
However, at today's prices, I think Vocus shares have modest growth potential and generous dividends on offer. It is forecast to pay a 3.3% fully franked dividend.
Foolish Takeaway
People often buy shares for dividends or growth. Meaning one or the other. However, it's best to invest in shares that offer dividends + growth, since dividends might not always be paid. For the best results, build a portfolio of stable, reliable dividend-paying ASX shares, and hold for the long run.
