The Motley Fool

3 Shares With Great Growth And Dividends: Persimmon plc, Telecom Plus PLC & easyJet plc

When you’re choosing your investment strategy, isn’t it hard to choose between dividend income and share price growth? I’m a great believer in looking for good dividends and reinvesting the cash each year, of course. But what if you can get both? Here are three that look set to provide exactly that:

Bricks and mortar

There might be a bit of a slowdown in housing recovery at the moment, but the sector is still looking very attractive to me. Take Persimmon (LSE: PSN), for example, which is sitting on earnings per share (EPS) growth forecasts of 21% and 14% for the years ending December 2015 and 2016 respectively. A price of 1,597p puts the shares on forward P/E multiples of only 11 and 9.7, giving us PEG ratios for the two years of 0.5 and 0.7.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

There’s a growth-investing rule of thumb that says anything under 0.7 is a good sign, and that’s for people usually  not looking for dividends. But you get those too with Persimmon — it pays back cash in non-standard instalments, but we’re looking at effective yields of 6.6% and 7.5% for the next two years.

Alternative telecoms?

Telecoms and multi-utility supplier Telecom plus (LSE: TEP) was a bit of a growth star, but its shares have fallen back by 43% over the past 12 months to 1,086p. But they’re still up 265% over five years, so is it time to take another look?

Well, we still have 27% EPS growth forecast for March 2015 followed by 18% a year later, giving us respective PEG ratios of 0.6 and 0.8. That would be fairly marginal as a growth rating alone, but analysts are predicting dividend yields of 3.9% this year and 4.6% next — with 6% pencilled in for March 2017. Could be time to buy on the dip.

Airline profits

And finally, what about easyJet (LSE: EZJ)? The budget airline can do no wrong, it seems, and has posted pretty amazing growth over the past few years as EPS quadrupled between 2010 and 2014. There’s more expected, too, with 12% on the cards for the year ending September 2015 followed by 13% in 2016.

Accompanied by mooted dividend yields of 3% and 3.3% these are perhaps not the most obviously attractive figures here, but it does come after five-year price climb of 328% to 1,867p! And we’re still only looking at P/Es of 14.6 and 13 — that’s better than the FTSE average for 2016, from a stock with more years of growth still expected.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US $12.3 TRILLION out of thin air…

And if you click here, we’ll show you something that could be key to unlocking 5G’s full potential...

It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…

But you need to get in before the crowd catches onto this ‘sleeping giant’.

Click here to learn more.

Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.