Some ASX shares can provide a good mixture of growth and income for your portfolio.

In this era of ultra-low interest rates it’s hard to find good sources of income. And with the coronavirus there are few shares that cab provide good growth right now.

Here are three ideas to consider:

Ansell Limited (ASX: ANN)

Ansell is one of the businesses involved in fighting the spread of the coronavirus. It makes a number of products like gloves, masks and protective suits.

However, despite the coronavirus impacts, the company recently reaffirmed its FY20 guidance for earnings per share (EPS) to be in a range of US$1.12 to US$1.22.

Even before the coronavirus Ansell was predicting solid mid-single digit growth so I think that Ansell is well placed to grow whatever happens next. I think it’s a good, defensive ASX share to provide growth and income.

In terms of dividend income it has a trailing dividend yield of 2.3%.

Magellan Global Trust (ASX: MGG)

Magellan Global Trust is a listed investment trust (LIT) which invests in some of the best shares in the world. You get indirect exposure to shares you just don’t find on the ASX. Some examples are Microsoft, Alphabet, Visa, Mastercard, Tencent, Alibaba and Facebook.

Many of its holdings are quality growth shares with great balance sheets. If you owned them yourself you wouldn’t get much income. But Magellan Global Trust can target a 4% distribution yield by paying out a portion of the long-term capital growth each year.

As the net asset value (NAV) of Magellan Global Trust grows, the distribution will rise over time with it. This is an attractive combination of growth and income from an ASX share.

Kogan.com Ltd (ASX: KGN)

Kogan.com is an online retailer that also has a third party marketplace. It also distributes cheap services like telecommunications, superannuation, insurance and so on.

With everyone limiting their exposure to the outside world it’s eCommerce businesses like Kogan.com that are getting a lot of the pent up demand. In April 2020 Kogan.com saw revenue growth of over 100%. ‘Adjusted’ earnings before interest, tax, depreciation and amortisation (EBITDA) grew over 200%.

It also announced this morning that it has acquired Matt Blatt, a furniture and homewares retailer which generated around 20% to 25% of its $46.5 million revenue online in FY19. It will be an online only retailer under Kogan.com’s leadership.

Kogan.com has grown its dividend each year over the past few years and currently has a grossed-up dividend yield of 2.6%.

Are all of these ASX shares buys for income and growth?

Kogan.com and Ansell have both performed strongly after the initial market selloff as investors realised the strength of those businesses. I don’t think they’re not cheap any more. But my ASX share pick for income and growth is Magellan Global Trust – it’s diversified, has the biggest yield and gives exposure to many of the best businesses in the world.

More reading

• Kogan.com share price on watch following acquisition news
• ASX small-cap sector rallies strongly during April
• These ASX shares are set to dominate the post-COVID-19 economy
• This ASX growth share has rocketed 150% higher since March. Is it too late to invest?
• With Aussie wages set to fall, could ASX 200 shares follow?

Motley Fool contributor Tristan Harrison owns shares of MAGLOBTRST UNITS. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Ansell Ltd. 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.

The post 3 ASX shares to buy for growth and income appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3dEesbg

The Kogan.com Ltd (ASX: KGN) share price will be one to watch today after the ecommerce company expanded its offering with an acquisition.

What has Kogan acquired?

This morning Kogan announced that it has acquired replica furniture and homewares retailer Matt Blatt.

Matt Blatt is a family-run business that was founded in 1981. In FY 2019 it recorded $46.5 million of revenue, of which ~20% to 25% came from its online business.

In March the company was in financial distress because of the coronavirus pandemic and revealed to Inside Retail that it had called in advisors to facilitate a potential sale. A number of parties were believed to be interested, but Kogan has proven to be the successful suitor.

It has acquired the company’s intellectual property and goodwill for a purchase price of $4.4 million. This has been funded by the company’s cash reserves.

Based on FY 2019’s online sales of ~$10.45 million, this represents an attractive multiple of 0.42x sales. As a comparison, Kogan’s shares are changing hands for 1.45x FY 2019 gross sales.

What now?

Kogan will relaunch the business as an online-only offering and go head to head with the likes of Adairs Ltd (ASX: ADH) and Temple & Webster Group Ltd (ASX: TPW).

Kogan’s founder and CEO, Ruslan Kogan, commented: “We are pleased to bring the iconic Matt Blatt brand into new ownership, and relaunch the business as an online-only offering. Our acquisition of Matt Blatt gives us a springboard from which to expand our reach in the furniture and homewares market.”

“We will be drawing on Matt Blatt’s decades of industry expertise and combining it with Kogan.com’s technology, systems and infrastructure to deliver a market-leading offering. We look forward to serving and delighting furniture and design lovers all over Australia,” the chief executive concluded.

More reading

• 3 ASX shares to buy for growth and income
• ASX small-cap sector rallies strongly during April
• These ASX shares are set to dominate the post-COVID-19 economy
• This ASX growth share has rocketed 150% higher since March. Is it too late to invest?
• With Aussie wages set to fall, could ASX 200 shares follow?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. 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.

The post Kogan.com share price on watch following acquisition news appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2yQ9A4a

If you are looking for market-beating returns over the next decade, then the three growth shares listed below could be the ones to buy.

I think their strong growth prospects means that investors could at least double their money with them over the next 10 years.

Here’s why I would buy them:

Altium Limited (ASX: ALU)

I think Altium has the potential to deliver very strong returns for investors over the next decade. This is due to its high quality electronic design software, its massive market opportunity, and its exposure to the rapidly growing Internet of Things (IoT) market. This year Altium expects to achieve 50,000 subscribers. After which, it is aiming for 100,000 subscribers by FY 2025. Combined with its other growing businesses such as NEXUS and Octopart, I feel Altium is well-placed to grow its earnings at a rapid rate for many years to come.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another great option could be Domino’s Pizza. Its growth other the last few years as been a little up and down, but I remain confident the long term trajectory is upwards. Especially given its same store sales and store expansion goals. Over the next five years the pizza chain operator is aiming to deliver annual same store sales growth of 3% to 6% and annual organic new store additions of 7% to 9%. If it can at least maintain its margins, this should support strong earnings growth over the next decade.

Pushpay Holdings Ltd (ASX: PPH)

A final growth share to buy for market-beating returns is Pushpay. The donor management system provider has just released its full year results and revealed a stunning ~1,500% increase in EBITDAF in FY 2020, The good news is that more strong growth is expected over the next 12 months, with management aiming to double its EBITDAF in FY 2021. But it isn’t about to rest on its laurels any time soon. The company has set itself a target of winning a 50% share of the medium and large church market. This represents a US$1 billion revenue opportunity for Pushpay. This compares to the operating revenue of US$127.5 million it recorded in FY 2020.

More reading

• 3 top ASX 200 shares every investor should buy
• 3 quality mid cap ASX shares to buy with $3,000
• ASX shares I’d invest $10,000 into today
• How to build good wealth with small investments
• Top brokers name 3 ASX 200 shares to buy right now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Domino’s Pizza Enterprises 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.

The post Double your money with these high quality ASX shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3fNPEiR