The iShares Global 100 ETF (ASX: IOO) is 1 of the 2 ASX shares I would buy today for both growth and dividend income
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I love ASX shares that offer investors both growth and income prospects. Both are equally important when it comes to total shareholder returns. Yet some investors prefer growth over income or vice versa. I’m not so picky, and as such if a company is offering good growth prospects with a growing income stream on the side, I’ll be interested. So here are 2 ASX shares that I believe offer just that this week.

MFF Capital Investments Ltd (ASX: MFF)

MFF is a Listed Investment Company (LIC) and one of my favourite companies on the ASX. As a LIC, MFF invests in a portfolio of other shares on behalf of its owners. In MFF’s case, these shares are usually located in the United States. It currently holds a portfolio of growth-orientated companies, the largest of which are US payments giants Visa Inc (NYSE: V) and Mastercard Inc (NYSE: MA). Other holdings (as of 31 August) include Home Depot Inc (NYSE: HD), Berkshire Hathaway Inc (NYSE: BRK.B) and Microsoft Corporation (NASDAQ: MSFT).

MFF is a growth-focused LIC at its core. But it has also recently beefed up its income chops. MFF has been paying a small but growing dividend over the past few years. It will be paying a 3 cents per share dividend in November, up from the 2.5 cents per share that was paid out in MFF’s 2020 interim dividend. If MFF pays out 6 cents per share in dividends in FY21, it gives MFF shares a forward dividend yield of 2.32% on current pricing. But it gets better. In its 2020 earnings report, MFF’ management declared that they intend to increase MFF’s annual dividend to 10 cents per share over the next few years. That would equate to a forward yield of 3.86%. As such, I think this is a top share for both growth and income today.

iShares Global 100 ETF (ASX: IOO)

Our second ASX share for growth and income is this exchange-traded fund (ETF) from BlackRock’s iShares. IOO holds 100 of the largest companies across the advanced economies of the world. You’ll find all of the big American companies here like Apple Inc. (NASDAQ: AAPL), Facebook, Inc. (NASDAQ: FB) and Amazon.com, Inc. (NASDAQ: AMZN), as well as some other names like Nestle and Toyota that you might be familiar with.

IOO has been a solid performer over the past decade, delivering an average return of 13.1% per annum. But IOO is also a solid income share. It currently offers a trailing yield of 1.56%, which should rise next year when the worst of the pandemic is behind us, in my opinion. As a rock-solid investment that offers growth, income and stability, I think IOO is a great option to consider.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Facebook, Magellan Flagship Fund Ltd, Mastercard, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Apple, Berkshire Hathaway (B shares), Facebook, Mastercard, Microsoft, and Visa and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2021 $200 puts on Berkshire Hathaway (B shares), short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, short September 2020 $200 calls on Berkshire Hathaway (B shares), long January 2021 $200 calls on Berkshire Hathaway (B shares), and long January 2021 $85 calls on Microsoft. The Motley Fool Australia has recommended Amazon, Apple, Berkshire Hathaway (B shares), Facebook, and Mastercard. 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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