S&P/ASX 200 Index (ASX: XJO) shares offering both growth and income could be solid ideas in this current operating environment.
There are plenty of ASX 200 shares that face short-term and/or long-term impacts because of the coronavirus. But there are some shares that are still growing and could be solid ideas today:
Amcor Plc (ASX: AMC)
Amcor is now one of the biggest global packaging businesses in the world with its flexible and rigid offerings. After the Bemis merger it’s now a powerhouse. The combination of the two companies has already generated $55 million of synergy benefits.
Adjusted free cash flow is still solid and the company increased its adjusted earnings per share (EPS) growth to 11% to 12%. Not many businesses are increasing their guidance at the moment.
The ASX 200 share currently offers a dividend yield of 4.9% with more growth likely in FY21.
Ansell Limited (ASX: ANN)
Ansell is one of the ASX 200 shares involved in fighting the spread of the coronavirus. It makes a number of products like gloves, masks and protective suits.
It’s another business that is still expecting to generate solid profit despite the global pandemic that’s currently going on.
I believe that Ansell is a defensive option now. Its products are useful for fighting against the coronavirus and if life goes back to normal it was expecting growth anyway.
It currently offers a trailing dividend yield of 2.1%.
Service Stream Limited (ASX: SSM)
Service Stream is an ASX 200 share that helps design, build, maintain and operate essential network infrastructures. The company has been steadily increasing its operating earnings and its dividend over the last few years.
The company recently said that its earnings before interest, tax, depreciation and amortisation (EBITDA) from operations will be approximately $108 million which would be a record operating result.
As part of the update the Service Stream board said it has the confidence with the company’s ability to maintain its commitment to dividends.
Service Stream has a trailing grossed-up dividend yield of 6.7%.
Foolish takeaway
Each of these businesses offer compelling long-term growth with a good immediate yield. In today’s environment the ASX 200 share I’d pick is Amcor because it has stated its earnings expectations are higher and it has the highest yield too.
But there are other great ASX shares out there to buy. I’d have a close look at these picks:
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More reading
- 2 quality ASX shares to buy for long-term growth
- Top brokers name 3 ASX dividend shares to buy
- What to watch on the ASX 200 next week
- The latest ASX small caps broker picks to buy today
- Why this ASX infrastructure company could help protect your portfolio in a downturn
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Amcor Limited. The Motley Fool Australia has recommended Ansell Ltd. and Service Stream 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.
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