2 ASX shares that I rate as buys today for both growth and dividends!

ASX share market corrections can be a worrying time, which is why it can be a smart move to look at businesses that have plans to grow earnings significantly in the coming years.

When growing companies experience a significant decline, it can mean investors can buy businesses at a much better price-to-earnings (P/E) ratio.

Two of the leading ASX growth shares that I’m excited about, outside of the tech space, are the following:

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is an affordable global jewellery retailer that aims to provide younger shoppers with attractive, good-value products.

I’m impressed by how much the business has already grown – to more than 1,000 global stores – and it’s still expanding at a pleasing pace.

In the FY26 half-year results, it reported 152 additional stores than in HY25, bringing its total to 1,095. I think the ASX share still has plenty of store growth potential in countries like Canada, Mexico, Germany, China, Vietnam, the UK, the US, Taiwan, and Hong Kong. The new brand that Lovisa has started, Jewells, could also be another useful growth avenue.

The company’s core revenue and net profit both increased by more than 20% in HY26, so it’s improving at a strong rate.

It’s down close to 50% in the last six months and it has dropped 30% this year, so this looks like an opportune time to invest.

Using the projection on CMC Invest, the Lovisa share price is now valued at just 23x FY26’s estimated earnings. That puts the PEG ratio at close to 1, making it an appealing pick today.

The ASX share is expected to pay an annual dividend per share of 97 cents per share in FY26, according to CMC Invest, giving the business a possible forward dividend yield of 4.75%. I’m expecting the dividend to grow at roughly the same speed as net profit in the coming years.

Guzman Y Gomez Ltd (ASX: GYG)

GYG is a Mexican food restaurant business with big ambitions. At the end of the FY26 half-year period, it had 237 locations in Australia – it wants to reach 1,000 restaurants within 20 years.

On top of that, the ASX share has a growing Asian network. I believe Asia gives GYG significant earnings growth potential beyond Australia, which the market is underestimating. It now has 22 locations in Singapore and five in Japan. I’m hopeful the US can deliver profitable growth, but I’m not counting on it.

HY26 saw Australia network sales increased $17.4% to $632 million, while Asian network sales grew 19.3% to $42 million. GYG’s overall net profit jumped 44.9% to $10.6 million.

If the company can continue expand its restaurant count, comparable sales and profit margins, then it should be on a very appealing journey to a great bottom line in the coming years.

It has dropped by more than 30% in the past six months, so this is an appealing time to invest, in my view.

The forecasts on CMC Invest suggest that the Guzman Y Gomez share price could be valued at 36x FY28’s estimated earnings, with a possible FY28 grossed-up dividend yield of 3.4%, including franking credits.

The post 2 ASX shares that I rate as buys today for both growth and dividends! appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.