Income investors that are looking for dividend options this week might want to check out the two ASX shares listed below.

Both of these ASX dividend shares have recently been tipped as buys by brokers. Here’s why analysts are bullish:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share that is rated as a buy is leading baby products retailer Baby Bunting.

It has been tipped as a buy by analysts at Citi. This is partly due to its private label opportunity, which the broker believes has a significant runway for growth. Citi also highlights that it has a strong position in a less discretionary category, which bodes well for sales in the current environment.

As for dividends, the broker is forecasting fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.64, this will mean yields of 3.45% and 4.1%, respectively.

Citi has a buy rating and $6.22 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that has been named as a buy is HomeCo Daily Needs REIT. It is a property company with a focus on neighbourhood retail, health and services, and large format retail.

Goldman Sachs is a big fan of HomeCo Daily Needs. Its analysts believe the company is well placed for growth thanks to the shift to omni channel retailing. In addition, Goldman highlights that the company has additional development and asset optimisation opportunities.

In respect to dividends, the broker is forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current HomeCo Daily Needs share price of $1.36, this will mean dividend yields of 5.9% and 6.6%, respectively.

Goldman has a buy rating and $1.70 price target on its shares.

The post Here are 2 ASX dividend shares that brokers rate as buys appeared first on The Motley Fool Australia.

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More reading

• Why cheap hamburgers could give beginner ASX share investors food for thought
• What I love about these 2 ASX dividend shares
• Top brokers name 3 ASX shares to buy today
• 2 top ASX dividend shares that analysts rate as buys
• 2 excellent ASX dividend shares rated as buys by experts

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. 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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The BrainChip Holdings Ltd (ASX: BRN) share price had a stellar day on the market on Monday.

The company’s shares leapt 13.87% to close at 98.5 cents. For perspective, the  S&P/ASX 200 Index (ASX: XJO) rose 1.23% today.

Let’s take a look at what could have impacted the Brainchip share price today.

What’s going on?

Brainchip shares soared today, but they were not alone among the ASX technology shares. The Wisetech Global Ltd (ASX: WTC) share price jumped 7.16% while Life360 Inc (ASX: 360) gained 8.24%.

The S&P/ASX All Technology Index (ASX: XTX) closed 2.54% higher today.

Today’s gains in the technology sector followed in the footsteps of the United States on Friday. The technology-heavy NASDAQ leapt 2.31% in Friday’s trade. The NASDAQ-100 Technology Sector Index (NASDAQ: NDXT) jumped 2.47%. This followed some positive consumer economic data, the Washington Post reported.

Brainchip did not release any news to the market on Monday. In early June, the company was added to the ASX 200 index.

Brainchip is a a global artificial intelligence (AI) chip maker. The company has partnerships with high profile companies including NASA and Mercedes.

The AI cybersecurity market is predicted to be worth US$133.8 billion by 2030, according to a report cited by Globe Newswire today.

It stated the AI cybersecurity market was worth $14.9 billion in 2021.

Brainchip share price snapshot

The Brainchip share price has soared 107% in a year, rising nearly 45% in the year to date.

For perspective, the benchmark ASX 200 index has shed 9% in the past year.

Brainchip has a market capitalisation of nearly $1.7 billion based on the current share price.

The post Why did the BrainChip Holdings share price leap 14% on Monday? appeared first on The Motley Fool Australia.

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More reading

• Here’s a look at the 5 best ASX All Ords tech shares in FY22
• How Brainchip shares gained 63% in a year when tech stocks nosedived
• Why did the BrainChip share price crash 30% in June?
• Why is the BrainChip share price sliding 4% today?
• Why is the BrainChip share price gaining 5% on Friday?

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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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Are you interested in adding some ASX growth shares to your portfolio this week?

Two ASX growth shares that could be worth considering are listed below. Here’s why analysts at Bell Potter are bullish on them:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is Altium. It is the leading printed circuit board (PCB) design software provider behind the Altium Designer platform.

Thanks to the company’s leadership position in a market growing rapidly, Altium’s management team has set itself some bold growth targets over the coming years. This includes more than doubling its revenue to US$500 million by 2026 and dominating its market.

Bell Potter is bullish on the company and believes it will achieve its guidance in FY 2022. It commented:

We do not, however, believe this [missing guidance] is the case as: 1. 1HFY22 revenue growth was strong; 2. Altium narrowed the revenue guidance range towards the upper end in late February knowing it would implement these marketing initiatives in Q4; 3. The strong momentum in Octopart in 1HFY22 is likely to continue into 2HFY22 and offset any weakness in China (due to lockdowns) and Russia.

Bell Potter has a buy rating and $34.00 price target on its shares.

Life360 Inc (ASX: 360)

Another ASX growth share that Bell Potter rates highly is location technology company Life360. It has over 30 million active users and is generating material recurring revenue from them.

And while Bell Potter acknowledges that the company isn’t profitable yet, it feels investors should look beyond this. This is due to Life360’s explosive growth, strong balance sheet, and expectation to be cash flow positive next year.

It commented:

Life360 develops and delivers a mobile app for families – called Life360 – that provides communications, driving safety and location sharing. The company adopts a freemium model to attract customers but has been successfully converting a portion of these customers to paying subscribers over the last several years by providing valuable features. The company has also recently made two acquisitions – Jiobit and Tile – so that now it not only connects and protects people but also pets and things. Yes Life360 is currently not profitable but is expected to be operating cash flow positive from 4Q2023 and has more than sufficient cash to fund its operations till then.

Bell Potter has a buy rating and $7.50 price target on Life360’s shares.

The post Broker names 2 ASX growth shares to buy now appeared first on The Motley Fool Australia.

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More reading

• 3 reasons I think Altium is a top ASX growth share
• Chicken and chips: Experts name 3 ASX shares to buy right now
• 2 top ASX 200 shares brokers rate as buys
• Here’s why analysts are tipping these ASX growth shares as buys
• Has a turnaround already begun for ASX tech shares? Experts reveal the outlook for FY23

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium and Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Australia and New Zealand Banking Group Ltd (ASX: ANZ) wants to buy the banking segment of Suncorp Group Ltd (ASX: SUN). But why?

The big four ASX bank is going to a lot of effort to acquire Suncorp, spending millions of dollars on transaction costs and capital raising.

Indeed, it’s raising around $3.5 billion in new shares at a 12.7% discount to the latest closing ANZ share price of $21.64.

ANZ is buying the earnings and the loan book of Suncorp. The purchase price of $4.9 billion represents a price/earnings (p/e) ratio of 13.8 times before synergies or 9.3 times after the full run-rate synergies. It also represents 1.3 times the net tangible assets (NTA).

It’s expected to be approximately neutral for earnings per share (EPS) on a pre-synergies, pro forma basis for FY23. Including the synergies, it’s expected to add to EPS in the low single-digits. The expected annual cost synergies are around $260 million, pre-tax, which is around 35% of Suncorp banking’s reported cost base in FY22.

Why does ANZ want to buy Suncorp Bank?

A low single-digit rise of EPS may not sound that compelling. But, there are other factors that ANZ is considering.

Speaking at the Suncorp and ANZ Media Conference, ANZ CEO Shayne Elliott said:

We’re acquiring a 1.2 million customer base, 700,000 of whom live here in Queensland, 400,000 of whom consider Suncorp Bank their main bank. That’s a very, very valuable franchise. Customers are really at the heart of what we’re acquiring, not bricks and mortar.

ANZ has committed to making no change to the total number of Suncorp bank branches in Queensland “for at least three years from completion”. Time will tell what happens after those three years.

Increases exposure to Queensland

ANZ described Queensland as one of Australia’s most important regions.

Buying Suncorp’s banking operations is aimed at accelerating the growth of its retail and commercial businesses, while also “improving the geographic balance of its business in Australia”.

Elliott explained the appeal of the Queensland economy:

Since March 2020, Queensland has recorded better economic growth, better workforce participation and more interstate migration than any other state or territory in Australia. It contributes 18% to Australia’s GDP and we believe we can use the resources at our disposal to further contribute to its continued success.

Bigger loan book

ANZ also said that the acquisition would include $47 billion of home loans, $45 billion in deposits, and $11 billion of commercial loans.

ANZ share price snapshot

Shares of the big bank were in a trading halt today. Over the last month, the ANZ share price has risen 2.27%.

The post ‘Not bricks and mortar’: The real value in ANZ acquiring Suncorp’s banking operations appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• ‘Really strong case’: Can ANZ win over the new ACCC boss?
• Why a Suncorp buyout could mean more green funding for Queensland
• State of the future: Why ANZ is excited about Queensland’s potential
• Why Ansell, EML, Suncorp, and Whitehaven Coal shares are charging higher

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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