Want growth and passive income? Here are the ASX shares I’d buy for the best of both worlds

Most investors target particular ASX shares chasing either growth or passive income from dividends. But some of the best ASX shares give their investors the best of both worlds. They are hard to find, and often their lucrativeness is only obvious in hindsight.

So today, let’s take a look at two ASX shares that might just fit the bill of providing both capital growth potential and dividend income.

2 ASX shares that could deliver both growth and dividends

WiseTech Global Ltd (ASX: WTC)

ASX 200 logistics share Wisetech has been a poster child for growth investors for years now. And fair enough too. The Wisetech share price has rocketed 567% over the past five years alone and is up an extraordinary 1,540% since 2016. And the growth doesn’t look to be slowing down either.

Earlier this year, WiseTech reported its latest half-year earnings, and they were a pretty sight. The company revealed a 35% rise in revenues, as well as a 40% surge in underlying net profit after tax (NPAT) to $108.5 million.

But Wisetech has also been quietly growing its dividends too.

Back in 2017, the company paid out a total of 2.2 cents per share in dividends. But by 2022, this had grown to 11.2 cents per share, up more than 400% from 2017. 2023’s Wisetech interim dividend of 6.6 cents per share was also a significant 39% increase over the corresponding dividend of 4.75 cents in 2022.

TechnologyOne Ltd (ASX: TNE)

Another ASX 200 tech share, enterprise software products company TechnologyOne is next up today. This is another company whose share price has followed its profitability growth over recent years.

Since 2018, the TechnologyOne share price has risen by an impressive 195%. In its most recent earnings from November last year (covering FY2022), TechnologyOne reported an 18% rise in revenues, as well as a 22% surge in NPAT to $112.32 million.

But again, it’s not just share price growth that investors have banked on. Back in 2018, TechnologyOne shares doled out a total of 11 cents per share in dividends. But by 2022, this had risen to 17 cents per share up more than 54%.

So here we have another ASX 200 share that has demonstrated a strong track record of providing both share price growth and a rising dividend.

 

The post Want growth and passive income? Here are the ASX shares I’d buy for the best of both worlds appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Technology One and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Technology One. 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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