Selecting a good investment that can provide both growth prospects as well as dividends is a difficult task that many investors struggle with. Typically, companies cater to one or the other but rarely do both.

Fortunately, there are well-established companies that can provide value to both growth and dividend-seeking investors, and Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) is one such company.

Shaw currently trades at $24.26. Year-to-date, the stock is relatively flat in terms of growth, registering just shy of a 1% increase in value. Over the past six months Shaw is up by 2.5%, and long-term investors will note that the stock is up 19% in the past five years.

Investing in Shaw for growth

The stock has appreciated nearly 4% each year for the past five years, which, while adequate, is hardly the definition of a growth-fueled stock. Putting the stock price aside, the real growth prospects over the next few years stem from the changes the company is making behind the scenes to expand product offerings in new areas.

Earlier this year Shaw sold off company’s media subsidiary to Corus Entertainment Inc. in a cash and stock deal that was worth approximately $2.65 billion.

This deal was significant for two reasons. Firstly, this brought the company closer to becoming a pure-play communications company. Secondly, Shaw used the proceeds from that deal to acquire Wind Mobile Corp.

Wind is a hugely popular carrier with a tendency to attract customers from the other Big Three carriers collectively known as “RoBelUs.” Wind has a no-frills, no-nonsense approach to billing, and it has price points that are lower than other carriers. This foray into the wireless sector could prove to be a lucrative revenue stream for Shaw over the long term.

The weak point for the carrier was coverage, which Shaw has stated will be a point of significant investment in the future. Investors thinking about Shaw as a growth stock should consider this point as Wind had coverage only in Ontario and in some parts of Alberta and B.C., so it will take some time for this to be built out.

Shaw as a dividend stock

Shaw’s dividend is, in a word, impressive. Shaw pays out a monthly dividend in the amount of $0.10 per share. Given the current stock price, this gives the company a yield of approximately 4.88%, which is more than what any of the Big Three provide to investors.

Even more impressive is that that the company has steadily raised this dividend over the years, a trend that is likely to continue as the company expands into the wireless sector.

In my opinion, Shaw is a great investment for those investors looking at long-term growth and a well-paying dividend. The monthly dividends can fuel further investments into the company, which in turn will result in further growth.

Stock buy alert hits astounding 96% success rate!

The hand-picked investing team inside Stock Advisor Canada, recently issued a buy alert for one special type of "bread-and-butter" stock where The Motley Fool U.S. has banked profits on 23 out of 24 recommendations. Frankly, with an astounding 96% success rate that has delivered average returns of 260%, chances are this new pick could deliver life-changing returns as well. Because the team at Stock Advisor Canada fully embraces the same time-tested investing philosophies that have led to countless Motley Fool winners globally. So simply  click here to unlock the full details behind this new recommendation and join Stock Advisor Canada.

*96% accuracy includes restaurant stock recommendations from Motley Fool U.S. services Stock Advisor, Rule Breakers, Hidden Gems, Income Investor and Inside Value since each services inception. Returns as of 5/27/16.


Let’s not beat around the bush – energy companies performed miserably in 2015. Yet, even though the carnage was widespread, not all energy-related businesses were equally affected.

We've identified an energy company we think offers one of the best growth opportunities around. While this company is largely tied to the production of natural gas, it doesn't actually produce the gas. Instead, it provides the equipment required to get natural gas from the ground to the end user. With diversified operations around the globe, we think it's a rare find in the industry.

We like it so much, we’ve named it as 1 Top Stock for 2016 and Beyond. To find out why, simply enter your email address below to claim your FREE copy of this brand new report, "1 Top Stock for 2016 and Beyond"!

Fool contributor Demetris Afxentiou has no position in any stocks mentioned.