Step 1: Identify the angle directly instead of using the identity.
Since $\cos A=\frac12$ is a standard value, we know straightaway that $A=60^\circ$.
Step 2: Bring in the matching sine value.
For $A=60^\circ$, $\sin A=\frac{\sqrt3}{2}$, so $\sin^2A=\frac34$ and $\cos^2A=\frac14$.
Step 3: Substitute into the expression.
\[ \sin^2A+2\cos^2A = \frac34 + 2\left(\frac14\right) = \frac34+\frac24=\frac54 \]
\[ \boxed{\dfrac{5}{4}} \]