I think the best ASX shares to buy and hold long-term are ones that deliver both capital growth and dividend income. Normally, investors tend to focus on one or the other, but netting both is very possible and highly lucrative.
So with that in mind, here are 2 ASX shares I would buy for both growth and income today.
Medibank Private Ltd (ASX: MPL)
Medibank is Australia's largest private health insurer and has actually only been available on the ASX since 2014 after it was kicked out of public ownership and privatised. The private health insurance business model has been showing signs of strain in recent years, which has resulted in the Medibank share price taking a considerable hit. Today, Medibank shares are going for $3.04 – a level you could have bought in at back in 2016. Alongside this price tag is a starting dividend yield of 4.3% today.
Still, I think this company is a great long-term stock to own. The government relies on private health insurance to take pressure off the public Medicare system. Therefore, I think over time that the government will do more to heard customers toward private health providers like Medibank. That's in addition to the range of existing tax incentives that already encourage customers to 'go private'.
Thus, for a long-term growth and income company, I think Medibank is a great option to consider today.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
This share isn't really a share, but a collection of ASX shares pooled together in an exchange traded fund (ETF). This ETF focuses on 64 ASX dividend-paying shares that offer the highest yields on the share market today. It has returned 20.53% over the past year, which includes 5.4% from dividend income.
some of VHY's top holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and Telstra Corporation Ltd (ASX: TLS). Because of the diversification and nature of its holdings, I think this ETF is a great stock to own for growth and income. You're getting exposure to many different sectors across the ASX, with varying rates of growth and income between them. Thus, I think this ETF would give a portfolio both balance and ballast – and is a worthy candidate (in my opinion) for an investment today.
Foolish takeaway
In my view, both of these ASX shares would make fantastic additions to a typical investor's portfolio today. Finding investments that can deliver both growth and income is tricky, but very possible!
