Stock Pick

1 ASX dividend share and 1 ASX growth stock to buy in April

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Person with a handful of Australian dollar notes, symbolising dividends.

It’s shaping up to be an interesting month for ASX share market investors.

If you’re hunting for reliable income or high-growth potential, these two ASX shares stand out: Washington H. Soul Pattinson and Company Ltd (ASX: SOL) for dependable dividends and Xero Ltd (ASX: XRO) for long-term capital growth.

Let’s take a closer look.

Soul Pattinson: Over 120 years of payouts

This ASX Share isn’t your average dividend play. Washington H. Soul Pattinson has been around for over 120 years and has paid a dividend every single year, through wars, pandemics, and recessions. Its track record of 28 consecutive years of dividend growth is unmatched on the ASX.

Originally a pharmacy business — hence the “Chemist” name — Soul Patts has since divested that arm and transformed into a diversified investment company. Its portfolio of investments generates strong, recurring cash flow, supporting both its regular payouts and long-term capital growth.

The company recently increased its HY26 interim dividend by 9.1% to 48 cents per share, giving it a grossed-up yield of 3.8% including franking credits.

With a combination of consistent income and an expanding investment portfolio, shareholders can reasonably expect both reliable dividends and gradual capital appreciation. The price of the ASX share has gained 9% in 2026 and 17% over 12 months.

Xero: Deep sell-off sparks opportunity

If income isn’t your priority, this ASX share offers growth. This cloud-based accounting platform powers small and medium-sized businesses, handling invoicing, payroll, and financial reporting all in one place.

Xero’s global footprint – Australia, New Zealand, the UK, and beyond – is a major strength, an its subscription model provides recurring revenue that grows as its customer base expands.

Xero hasn’t been smooth sailing. The recent tech sell-off hit the ASX share hard, amplified by fears Artificial Intelligence could disrupt traditional software and higher interest rates pressuring valuations. But that’s creating opportunity.

After months of heavy selling, the ASX share is trading at a significant discount to prior highs, attracting bargain hunters looking for high-quality growth at lower entry points.

Analyst sentiment is overwhelmingly positive. According to TradingView, 13 out of 14 analysts rate Xero as a buy or strong buy. Price targets suggest upside of up to 210%, with Citi’s $144.80 target implying a 92% potential gain from current levels.

Its sticky ecosystem, scalable business model, and ongoing global expansion make the $12 billion ASX share a compelling long-term growth story.

Foolish Takeaway

Together, these ASX shares represent two sides of a balanced portfolio: income today and growth tomorrow. Soul Patts offers stability and dependable dividends backed by a century-long track record, while Xero offers high-growth potential for investors willing to ride the ups and downs of tech.

These ASX stocks show that whether you’re chasing reliable payouts or explosive upside, there are opportunities waiting for investors willing to buy quality at the right time.

The post 1 ASX dividend share and 1 ASX growth stock to buy in April appeared first on The Motley Fool Australia.

Should you invest $1,000 in Washington H. Soul Pattinson and Company Limited right now?

Before you buy Washington H. Soul Pattinson and Company Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Washington H. Soul Pattinson and Company Limited wasn’t one of them.

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See the 5 Stocks

* Returns as of 20 Feb 2026

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended 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 Scott Phillips.

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