How you can generate income and growth with these 3 shares

The three ASX stocks will give your portfolio a good balance between income and growth.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Sometimes investing for income doesn't mean you have to lose the ability to grow your capital as well.

Here are three stocks with good prospects of generating both income and growth for your portfolio:

Auckland International Airport Ltd (ASX: AIA)

New Zealand's largest airport recently reported a 17% increase in half year profits and benefits from the increase in tourism in the country. I like its wide moat which is entrenched by the fact that it essentially has a monopoly over air travel to Auckland. It also has a large commercial property portfolio which can be further developed to diversify its revenue streams.

Auckland Airport is currently trading at a dividend yield of 3.4%.

Bapcor Ltd (ASX: BAP)

The automotive parts supplier is a dominant player in an industry that has proved resilient to the winds of change. The population of cars in Australia and New Zealand continues to grow and they all need spare parts for repairs and maintenance.  Due to some smart acquisitions in the past, Bapcor essentially covers all aspects of the after-purchase market from wholesale to retail and service. Its scale and brand presence also make it difficult for new competitors to take up market share.

Bapcor is current trading at a dividend yield of 2.2%.

Suncorp Group Ltd (ASX: SUN)

The Queensland based insurer has been rated a buy recently by top brokers Credit Suisse despite weaker-than-expected results. It's one of the quirks of investing in insurance stocks as an adverse claims experience lowers profits which results in insurance companies raising premiums and leading to higher future profits when the claims normalise. Suncorp's banking business also gives it a more diverse source of income compared to its competitors Insurance Australia Group Ltd (ASX: IAG) and QBE Insurance Group Ltd (ASX: QBE).

Suncorp is currently trading at a dividend yield of 5.2%.

If you are looking for more growth investing ideas, our report below is a good place to start. These are the big ideas of tomorrow that billionaires are investing in.

Motley Fool contributor Kevin Gandiya has no position in any of the stocks mentioned. You can follow Kevin on Twitter @KevinGandiya The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia owns shares of Insurance Australia Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »