2 ASX shares that could be buys for both growth and dividends

Brickworks and Bapcor are both options for dividends and growth.

| More on:
Stacks of coins in a row with each higher than the last, and a person standing on top of each one watching them grow.

Image source: Getty Images

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

Some ASX shares are known for being growth-focused whilst others are picked because of their dividend yields.

The combined return of dividends and the capital growth is called the total return. A few companies may be able to generate good returns on both fronts of dividends and growth.

These two ASX shares are ones that may be able to deliver:

Bapcor Ltd (ASX: BAP)

Bapcor is a leading car parts business that operates under a number of different brands and businesses including Burson, Autobarn, Autopro, Truckline and Midas.

Current conditions have helped drive profit higher. The lack of international travel has led to more vehicle holidays, increasing the demand for Bapcor products because of higher wear and tear on vehicles. There has also been a strong market for second hand cars, which may mean a higher demand for replacement products. Retail conditions were also strong in FY21.

The strong demand led to revenue growth of 20.4% to $1.76 billion, pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 28.8% to $279.5 million and pro forma net profit after tax (NPAT) went up 46.5% $130.1 million.

It added a net 31 new company locations throughout its network over FY21. Combined with the 25% investment in Tye Soon (which added 60 locations), it now has around 1,100 locations throughout Australia, New Zealand and Asia.

The ASX share is investing to drive the long-term success of the ASX share. The new distribution warehouse at Tullamarine in Victoria has been completed with retail having successfully transferred into the facility and a new distribution centre for Queensland has been approved. It's also investing in its 'digital transformation', including its new Autobarn e-commerce platform and business to business platforms in Australia, Thailand and New Zealand.

Bapcor's dividend was increased by 14.3% to 20 cents per share in FY21. That equates to a grossed-up dividend yield of 3.8%.

Brickworks Limited (ASX: BKW)

Brickworks is an ASX share that has a few different segments.

It has a variety of building products including bricks, paving, masonry, roofing, precast and so on in Australia. The company also has brickmaking operations in the US after making a few acquisitions.

Brickworks has a 50% market share of an industrial property trust alongside Goodman Group (ASX: GMG) which is steadily building an impressive portfolio of buildings like distribution centres.

Finally, Brickworks owns a large shareholding of the investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Brickworks has owned these Soul Patts shares for decades.

Brickworks has maintained or increased its dividend every year since 1976.

The ASX share just reported its FY21 result, which included a final dividend of 40 cents per share, an increase of 3%. That brought the full year dividend to 59 cents per share, an increase of 3%.

In that FY21 result, whilst total revenue fell 6% to $890 million, underlying earnings before interest and tax (EBIT) increased 86% to $383 million and underlying net profit after tax (NPAT) jumped 95% to $285 million.

A key part of the profit growth came from the property trust value rising by another $184 million, helped by strong structural tailwinds. This included a $149 million of revaluation gains. After including debt, Brickworks' share of the net assets was $911 million. The rapid growth in online shopping has increased the importance of well-located distribution hubs and "sophisticated supply chain solutions".

The ASX share says that it's in a strong position, with conservative gearing and a diversified portfolio of attractive assets.

At the current Brickworks share price, it has a grossed-up dividend yield of 3.4%.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 6 March 2025

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Bapcor, Brickworks, and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another tough day for investors this Monday.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Broker Notes

Bell Potter names more of the best ASX 200 stocks to buy in April

Its analysts believe these shares 'offer attractive risk-adjusted returns over the long term.'

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Opinions

Many ASX share prices are falling today. How do I decide what to buy?

April 2025 has started off roughly. What should we buy?

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Capricorn, Nuix, Westpac, and Woodside shares are sinking today

These shares are starting the week deep in the red. But why?

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Share Market News

Why Abacus, Cettire, Challenger, and Lynas shares are charging higher today

These shares are avoiding the market selloff on Monday.

Read more »

A woman sits on sofa pondering a question.
Broker Notes

Battle of the online classifieds: Should I buy Car Group or Seek shares?

Brokers rate both shares highly.

Read more »

5 arrows going down with a red background.
Share Fallers

11 popular ASX 200 shares crashing to multi-year lows amid market carnage

Bank shares, mining stocks, and technology stocks are among those crashing to multi-year lows today.

Read more »