If you’re wanting to diversify your portfolio with some international options, then you might want to look at exchange traded funds (ETFs).

ETFs give investors easy access to a large and diverse number of different shares through a single investment. This makes them a great idea if you’re wanting diversification but don’t have the funds to spread across a large number of individual shares.

With that in mind, listed below are two ETFs which are highly rated. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ASX ETF to look at is the BetaShares Global Cybersecurity ETF. It aims to track the performance of an index providing investors with exposure to the leading companies in the growing global cybersecurity sector.

BetaShares notes that in a world where smart, connected devices already far outnumber humans, investors are increasingly recognising the growth opportunities presented by the global cybersecurity sector.

As the HACK ETF provides access to a portfolio of leading companies from around the world which are working to reduce the impact of cybercrime, this ETF could be a great way to gain exposure to this growth sector.

Included in the fund are both global cybersecurity giants and emerging players from a range of global locations. Among its holdings you’ll find Accenture, Cisco, Cloudflare, Crowdstrike, and Okta.

The latter provides large enterprises with workforce identity solutions. Demand for its offering has been growing rapidly over the 12 months as more people work from home.

Over the last three years, the ETF has generated a return of 25.1% per annum for investors.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Vectors Morningstar Wide Moat ETF gives investors exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages.

Among the 49 stocks included in the portfolio, you’ll find the likes of Amazon, Bank of America, Berkshire Hathaway, Constellation Brands, Intel, McDonalds, and Microsoft.

Berkshire Hathaway is of course Warren Buffett’s multinational conglomerate. Over the years the conglomerate has acquired well-known companies such as Duracell, GEICO, and See’s Candies, among countless others. It also has large stakes in the likes of American Express, Apple, Coca-Cola, Kraft Heinz, and Wells Fargo.

These successful acquisitions and investments have led to its shares generating staggering returns for investors over the last five decades. Few investors would bet against Buffett’s investments doing the same in the future.

Over the last five years, the ETF has provided investors with a total return of 17.1% per annum.

More reading

• Got money to invest? Here are 3 ASX shares to buy
• 2 ETFs offering unique investment exposure
• 2 excellent ASX ETFs to buy
• Got cash to invest? Here are 3 ASX shares to buy
• 2 top ETFs to buy next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are a few S&P/ASX 200 Index (ASX: XJO) shares that are delivering elevated levels of growth at the moment.

COVID-19 has caused flow-on effects to different industries and companies. For some, like travel, it has made it difficult to make any profit at all. For others, there is a lot of growth happening:

Bapcor Ltd (ASX: BAP)

Bapcor describes itself as Asia Pacific’s leading provider of vehicle parts, accessories, equipment, services and solutions, with a network of over 1,100 locations across Australia and New Zealand.

The company had been guiding that the FY21 half-year result would be strong. It was.

Revenue for the six months to 31 December 2020 was up 25.8% to $883.6 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 36.5% to $145.6 million, underlying EBIT went up 45% to $106.8 million and underlying net profit after tax (NPAT) rose by 54% to $70.2.

Statutory earnings per share (EPS) rose 25.3% to 19.9 cents, allowing the board to increase the interim dividend by 12.5% to 9 cents.

Bapcor said that its trade segment, including Burson, delivered revenue growth of 12.3% and it added another 9 stores during the period.

The retail segment, which includes Autobarn, saw revenue growth of 44% and EBITDA growth of 55.8%.

The ASX 200 share also said that significant progress has been made in its investments for long-term growth. The new distribution warehouse in Melbourne is nearing completion and a new e-commerce platform will soon be launched.

It said that performance in the first month of the second half of FY21 has been at similar levels as the first six months of the year.

Sonic Healthcare Ltd (ASX: SHL)

Sonic is one of the world’s largest pathology businesses with operations in Australia, North America and Europe.

The healthcare ASX 200 share announced its FY21 half-year result a couple of days ago which showed revenue growth of 33% to $4.4 billion.

There has been a significant revenue and earnings contribution from COVID-19 testing, leveraging existing Sonic infrastructure. More than 18 million COVID-19 PCR tests have been performed to date in approximately 60 Sonic laboratories around the world.

The global base business revenue (excluding COVID-19 testing) was down 1% in the first half, but it was significantly less impacted than in the first few month of the pandemic.

Sonic said it managed to grow its profit margins in both its laboratory and imaging operations.

Half-year EBITDA grew by 89% to $1.3 billion and net profit rose by 166% to $678 million. It was this strength that allowed the board to continue the progressive dividend policy, increasing the dividend by 6% to 36 cents.

For the rest of FY21, it’s expecting continuing high levels of COVID-19 testing. It’s looking at growth opportunities globally – Sonic is currently bidding on “significant” opportunities in Australia, the UK, the USA and Canada.

More reading

• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• ASX 200 sinks 1.3%, Cochlear soars, TWE sours
• The PWR (ASX:PWH) share price is on fire today, up 6%. Here’s why
• ASX 200 down 0.6%: Cochlear jumps, Goodman upgrades guidance

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The team at specialist small and microcap fund manager, Spheria Asset Management, have been busy looking at small cap ASX shares they believe offer investors exceptional cash flow.

Why is cash flow important?

Spheria Asset Management’s Portfolio Manager, Marcus Burns, explained the importance of cash flow when looking at small caps.

He commented: “When it comes to investing in small caps, too many investors ignore cash flow, but when it comes to small caps, cash is king.”

“Key to our investment process is buying businesses that generate predictable free cash flows at an appropriate multiple for the forecast growth profile. By default, this lends itself to screening out companies that don’t generate cash, lack sustainability or are being priced nonsensically by the market.”

“The cash-flow conversion rate is a key metric in this process, and we believe it’s one of the most important characteristics for enduring small-cap returns.”

Given that the Spheria Australian Smaller Companies Fund has returned 33.9% (net of fees) in the six months to January 31, it certainly pays to listen to what Spheria says.

Why ASX shares does Spheria like?

The three small cap cash flow kings that Spheria likes are listed below. Here’s what it has to say about them:

A2B Australia Ltd (ASX: A2B)

The first cash flow king is A2B Australia, formerly known as Cabcharge. Mr Burns explained:

“The COVID-19 outbreak has hurt sentiment towards the business given reduced taxi usage from ongoing restrictions. While the company’s short-term performance in its core mobility business is likely to remain patchy the balance sheet is more than strong enough to see A2B through ($24m net cash).

“The company has also begun to articulate a measured strategy to grow its payments business into the non-taxi space in Australia and its mobility platform solutions business globally. We believe the market continues to discount an overly bearish outcome on the core mobility business let alone any success on the latter two growth opportunities.

“A2B’s fundamentals are incredibly strong – its long-term rate of cash flow conversions sits at 84%, it has net cash of around $24m, yet trades on an EV/EBIT multiple of around 4x.”

Monadelphous Group Limited (ASX: MND)

Another cash flow king according to Spheria is this global engineering company. The portfolio manager commented:

“What’s important about this construction engineering company is that it has two divisions, one is an engineering division where it builds something once-off, the second is a maintenance division.

“We believe the maintenance division is the company’s most lucrative division and it has been growing to now account for around 63% of the business.

“Monadelphous has a long-term cash flow conversion rate of 112%. It trades on around 11x EBIT, has around $200m of cash on the balance sheet and we think it presents incredibly good value especially now that the business mix has improved over time. Monadelphous stands to benefit from the improved sentiment and exploration activity in the resources sector.”

Mortgage Choice Limited (ASX: MOC)

Finally, Mr Burns feels that mortgage and home loan broker, Mortgage Choice, is another cash flow king for ASX investors to look at. He explained:

“During December, MOC was one of our microcap fund’s largest contributors, clocking a 20% return. We were genuinely perplexed why the stock remained so cheap after posting a robust FY20 result. Since the day of that announcement, it has returned an additional 71% showing how microcaps share price performance can sometimes badly lag the fundamentals.

“The company still only trades on a PE of 10x with net cash of $6m and a highly attractive dividend yield of +8% (fully franked) that is underpinned by a $54bn loan book.”

More reading

• Mortgage Choice (ASX:MOC) share price tumbles 14% despite profit boost
• NRW (ASX:NWH) share price jumps on acquisition update

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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There are a few ASX shares available to Aussie investors that keep growing the dividend every year.

In a world that is currently being heavily affected by COVID-19 and a number of other unprecedented impacts, growing dividends may seem attractive.

There’s no guarantee that an ASX dividend share will grow its dividend in any given year, but the following three have been steadily growing their dividends for a while:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is the ASX share with the longest-running dividend record right now. It has grown its dividend every year since 2000. On top of that, it has actually paid some sort of a dividend each year since it listed in 1903.

It used to just be a pharmacy business. But that was long ago. Soul Patts is now a diversified investment conglomerate that invests in various asset classes and listed businesses. Its biggest investment currently is its holding of TPG Telecom Ltd (ASX: TPG) shares, with Brickworks Limited (ASX: BKW) also being a major position.

The ASX dividend share also has investments across resources, agriculture, financial services, swimming schools and luxury retirement villages.

Each year, the company funds its increased dividend from the net operating cashflow that it receives as dividends and other income from its portfolio.

The company recently tried to acquire aged care provider Regis Healthcare Ltd (ASX: REG), but it was knocked back.

At the current Soul Patts share price it has a grossed-up dividend yield of 3%.

Rural Funds Group (ASX: RFF)

Rural Funds is a farmland landlord, operating in a real estate investment trust (REIT) structure.

It owns five different types of farms: almonds, macadamias, vineyards, cattle and cropping.

Many of its tenants are large and listed, such as Olam, JBS, Treasury Wine Estates Ltd (ASX: TWE), Select Harvests Limited (ASX: SHV) and Australian Agricultural Company Ltd (ASX: AAC). These tenants are on long-term contracts, Rural Funds’ weighted average lease expiry (WALE) was 11.1 years at 31 December 2020.

The ASX dividend share aims to increase its distribution by 4% per annum for shareholders, and it has been successful with this strategy thanks to two main reasons.

The first is its structured rental growth with fixed and CPI indexation, along with market rent review mechanisms.

The other main reasons is the investing it does at its farms. This is a combination of productivity improvements as well as converting some farms to higher and better use. This strategy is expected to generate earnings growth in future years.

Rural Funds recently announced it’s forecasting a FY21 distribution of 11.73 cents, which translates to a FY22 yield of 5% at the current Rural Funds share price.

Charter Hall Long WALE REIT (ASX: CLW)

This is another REIT, except it owns a diverse portfolio of assets including telecommunication exchanges, agri-logistics, office buildings, industrial and logistics and long WALE retail.

All of its tenants are large organisations. In terms of the rental income generated, these are the largest tenants and responsible for 3% or more of the total rental income: Telstra Corporation Ltd (ASX: TLS), Australian government entities, BP, Woolworths Group Ltd (ASX: WOW), Inghams Group Ltd (ASX: ING), Coles Group Ltd (ASX: COL), David Jones, Metcash Limited (ASX: MTS), Arnott’s Group and Westpac Banking Corp (ASX: WBC).

It was one of the few REITs to increase its distribution during the COVID-19-affected year of 2020.

In the recent FY21 half-year result it reported that its operating earnings per security (OEPS) and distribution increased by 3.6%.

It’s expecting OEPS of at least 29.1 cents in FY21, which, with a 100% distribution payout yield, translates to a yield of at least 6.3%.

More reading

• Did you miss the Rural Funds (ASX:RFF) 94% profit growth in HY21?
• 2 high-yielding ASX 200 shares
• 2 reliable ASX dividend shares to buy for your income portfolio
• 2 ASX dividend shares rated as strong buys by brokers
• Why Soul Patts (ASX:SOL) could be the best ASX dividend share

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, Telstra Limited, Treasury Wine Estates Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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A strategy that aims to buy cheap shares and hold them for the long run has historically been relatively successful. While it does not guarantee profits, it can be a means of potentially using the stock market’s cycle to an investor’s advantage.

With many stocks currently trading at low prices due to ongoing economic uncertainty, there may be an opportunity to buy them prior to their recovery. Although an economic recovery cannot be assumed, history suggests that there is a good chance it will take place over the coming years. This could lift the valuations of today’s underpriced stocks.

Cheap shares following the market crash

While many cheap shares have bounced back following the 2020 stock market crash, others have failed to fully recover to their pre-crash levels. In some cases, this may be warranted because of their weak financial positions and challenging future outlooks. However, in other cases, they may have the strategies, financial means and market positions to mount a successful recovery over the long run.

Clearly, identifying such companies can be challenging. However, doing so could be a prudent move, since it may enable an investor to reduce their overall risks. Cheap shares in companies with poor finances and weak market positions may be less likely to deliver successful turnarounds, or even survive, over the long run. Therefore, focusing on high-quality companies that are undervalued may be a more prudent approach.

The prospect of economic growth

As mentioned, an economic recovery that lifts the valuations of today’s cheap shares cannot be taken for granted. The future is always very uncertain, and the pandemic is an extremely rare event that may have as yet unknown effects on the world’s GDP prospects.

However, previous economic declines have always been followed by growth. No recession has yet lasted in perpetuity. Therefore, taking a long-term view of cheap stocks could be a means of capitalising on a likely economic recovery. Just as the 2020 market crash was almost impossible to predict, trying to forecast when any economic recovery will take hold is a very difficult task. Therefore, buying shares while they still trade at cheap prices could be a sound move.

Minimising risks

When investing in cheap shares, or any type of stock, it is impossible to reduce risks to zero. There is always the potential for losses over any time period from any holding. After all, the future is a known unknown that cannot be forecasted accurately on a consistent basis.

However, it may be possible to reduce risk through actions such as focusing on stronger businesses and building a portfolio made up of a broad range of businesses, industries and geographies. Together, they may offer a lower level of risk versus a concentrated portfolio, and may also deliver higher returns in a potential long-term economic recovery.

More reading

• Spheria Asset Management names 3 ASX small cap cash flow kings
• 3 ASX shares that keep growing the dividend every year
• 3 little-known ASX dividend shares offering big income
• 3 reasons the Wesfarmers (ASX:WES) share price could be in the buy zone
• 2 ASX shares rated as strong buys by brokers

Motley Fool contributor Peter Stephens 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 Bruce Jackson.

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It’s not only the large ASX blue chips that pay dividends, there are also small ASX dividend shares that have large yields.

Not every business that pays a dividend is worth owning. But smaller businesses may have the potential to deliver longer-term growth.

Pacific Current Group Ltd (ASX: PAC)

This business has a trailing grossed-up dividend yield of 8.5%. Broker Ord Minnett is expecting Pacific Current to pay a grossed-up yield of 9.7% in FY21.

It makes investments into global fund managers based anywhere in the world and helps them grow.

Pacific Current has a number of different funds management investments including GQG, Astarte Capital Partners and Victory Park.

In FY20, the ASX dividend share’s earnings were boosted by Pacific’s funds under management (FUM) growing to $93 billion. FY20 underlying earnings per share (EPS) went up by 18% to $0.51, with the dividend per share increasing by 40% to $0.35 per share.

In the update for the three months to 31 December 2020, Pacific Current said that its FUM had risen to $112.8 billion, largely thinks to GQG.

Adairs Ltd (ASX: ADH)

Adairs is one of the largest retailers of home furnishings in Australia. Its last 12 months of dividend declarations amounts to a grossed-up dividend yield of 8.3%.

The ASX dividend share just reported its FY21 half-year result which showed strong growth.

Group sales rose 34.8% to $243 million, with Adairs online sales rising 95.2%. Group online sales amounted to $90.2 million, being 37.1% of total sales.

The gross profit margin of the business grew significantly, rising by 690 basis points to 67.8%. This helped underlying earnings before interest and tax (EBIT) jump 166% higher to $60.2 million. Statutory net profit soared 233.4% to $43.9 million.

Growth has continued into the second half of FY21, with total sales up 25% and Adairs online sales rising by 65.9%.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second largest funeral operator in the country.

It has a trailing grossed-up dividend yield of 4.8%.

Despite COVID-19, the company was able to deliver growth in FY20 with a 6.5% increase in operating net profit after tax (NPAT) and a 1.6% increase in the average revenue per funeral. The FY20 dividend amounted to 10 cents per share.

In the first quarter of FY21, it delivered 18% growth of operating earnings before interest, tax, depreciation and amortisation (EBITDA) to $10.5 million, the average revenue per funeral grew between 2% to 4% and there was total volume growth year on year.

The ASX dividend share is expecting long-term growth from a rising and ageing population, strong funding and acquisitions.

More reading

• Why the Adairs (ASX:ADH) share price just raced to a record high
• Got money to invest for dividends? Here are 3 ASX shares
• ASX retail shares show strong signs of resurgence 
• 3 highest yielding ASX dividend shares
• Got cash to invest? Here are 3 ASX shares to buy

Tristan Harrison owns shares of PACCURRENT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia has recommended ADAIRS FPO and Propel Funeral Partners Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Wesfarmers Ltd (ASX: WES) share price has been a positive performer over the last six months.

During this time the conglomerate’s shares have risen almost 11%.

Is it too late to buy Wesfarmers shares?

The good news is that it may not be too late to buy Wesfarmers shares according to one leading broker.

A note out of Goldman Sachs reveals that its analysts have upgraded the company’s shares to a buy rating and lifted its price target by 23.8% to $59.70.

This price target implies potential upside of 10.5% over the next 12 months excluding dividends. Including dividends, the broker estimates its shares to provide a potential total return of over 14%.

Why is the Goldman Sachs bullish on Wesfarmers?

Goldman Sachs made the move in response to Wesfarmers’ half year result last week.

It was impressed with the company’s performance and named three reasons why it has upgraded its shares. They are as follows:

Favourable housing cycle

“Earnings momentum in Bunnings (c. 65.2% of FY22 EBIT and 75.8% of SOTP EV) benefits from a strong property cycle due to its exposure to DIY and Trade home improvement categories. Housing indicators appear to be more positive in the recent updates and industry expectations remain positive for the short term. We believe this is likely to impact Bunnings positively while it cycles through the strong COVID driven sales in the past year, resulting in strong short- /medium-term earnings momentum.”

Turning the corner in Department stores

“The department stores division (19.8% of EBIT and 9.4% of SOTP EV) is currently undergoing a restructuring. While the viability of the Target business model in the longer term was a key question previously, we believe that the pandemic driven demand has resulted in the Target offer being refined to meet consumer demand, with e-commerce playing a key role within the business. We no longer expect this business to be an earnings drag to WES but that Target will remain a low growth, low margin sustainable engine complementing the successful Kmart business model.”

Potential for M&A or capital management

“Wesfarmers maintains a very strong balance sheet (Net cash position of A$870mn in Dec 2020). In our estimates, the group’s leverage position offers headroom of >A$8bn for capital management or M&A before it would risk breaching the range for the A-/A3 credit rating that the group maintains. While we believe management is unlikely to return capital while the macro uncertainties remain, we note WES holds strong firepower to take advantage of any long term return accretive M&A opportunities in the short term and offers potential for capital management in the medium term.”

More reading

• Wesfarmers (ASX:WES) share price on watch after broker upgrade
• ASX 200 mixed, CSL reports 44% profit growth, TWE soars
• Wesfarmers (ASX:WES) share price tumbles despite strong half year profit growth
• Wesfarmers (ASX:WES) share price on watch following lithium update
• ASX 200 Weekly Wrap: ASX cools on earnings reality check

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are a few ASX shares that are highly regarded by multiple brokers.

Sometimes you can get differences of opinion from brokers about different companies. One broker might say that Woolworths Group Ltd (ASX: WOW) shares are a buy, whilst another one could think that Woolworths shares are a sell.

When many brokers think that an ASX share is a buy then it could be an indicator that there’s an opportunity. Or that they’re all wrong.

With that in mind, here are two that are liked by several brokers:

Reject Shop Ltd (ASX: TRS)

The discount retailer is rated as a buy by at least three analysts including Ord Minnett.

Reject Shop just announced its FY21 half-year result. It announced that sales fell by 0.3% to $434.3 million, with comparable store sales flat.

The company said that sales were impacted by COVID-19 restrictions and stock availability issues because of delays in international shipping. However, almost all Christmas stock was on the shelves before Christmas and it was effectively sold out before Christmas Eve.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) went up by 20.8% to $31.1 million, with underlying EBIT rising by 44.9% to $23.3 million and underlying net profit after tax (NPAT) going up 46.5% to $16.3 million. This was achieved despite a write down of hand sanitiser of $3.6 million.

A key part of the profit growth was the cost of doing business (CODB) margin improving by 230 basis points to 34.9%. That included $2.4 million in administration expense savings and $8 million in store expenses.

The reduction in inventory by the ASX share, as well as the simplification and standardisation of in-store processes, during the half were the main drivers of store labour reducing to 13.6% of sales, down from 14.9% in the prior corresponding period.

Reject Shop reminded investors that it normally makes a loss in the second half of the year, so the first half shouldn’t be used as an indicator for the second half. It also continues to be affected by lower foot traffic and higher shipping charges.

It had net cash of $107.6 million at 27 December 2020 on the balance sheet, up from $51.9 million at 29 December 2019.

Ord Minnett said that the underlying EBITDA was better than the broker was expecting because of cost reductions. It has a share price target of $10.34 for Reject Shop.

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting shares are liked by at least five brokers, including Morgans.

This is another ASX retail share that is popular. The baby and infant product retailer announced its FY21 half-year result earlier this week.

It reported that pro forma net profit after tax rose by 43.5% to $10.8 million and statutory net profit grew by 54.7% to $7.5 million.

This result was driven by growth across various parts of the business. Total sales increased by 16.6% to $217.3 million, drive by online sales growth of 95.9% and comparable store sales growth of 15% (or 21.8% excluding Victorian stores).

The ASX share saw increased profitability at various levels of its financials. The gross margin improved by 41 basis points to 37.4%, helping pro forma EBITDA increase by 29.7% to $18.5 million.

Due to the strength of the result, the Baby Bunting board decided to increase the interim dividend by 41.4% to 5.8 cents.

In a trading update, Baby Bunting said that comparable store sales for the first six weeks of the second half of FY21 showed growth of 18.5%.

Morgans said that whilst the net profit wasn’t quite as good as expected, the expansion to New Zealand adds to Baby Bunting’s growth prospects and may offer better returns compared to retail peers. The retailer’s growth for FY23 and further into the future looks better because of New Zealand.

The broker has a share price target of $6.39 for Baby Bunting.

More reading

• All eyes on the Reject Shop (ASX: TRS) share price
• Leading brokers name 3 ASX shares to buy today
• ASX 200 falls, Melbourne lockdown bites, Baby Bunting drops
• Why AVITA, Baby Bunting, Kathmandu, & Webjet shares are sinking
• Why the Baby Bunting (ASX:BBN) share price is tumbling 10% lower

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Are you looking to boost your income portfolio with some ASX dividend shares? Then you might want to take a look at the ones listed below.

Here’s why these ASX dividend shares could be in the buy zone:

Accent Group Ltd (ASX: AX1)

This leading leisure footwear retailer could be a top option for income investors.

Thanks to the strong performance of its HYPEDC, The Athlete’s Foot, and Platypus brands, Accent has been growing at a very strong rate over the last 12 months. This has been driven partly by a favourable redirection of consumer spending away from international travel.

Accent recently revealed first half like for like sales growth of 12.3% excluding stores closures. And with its online sales booming, there’s a good chance it will be enjoying wider margins and deliver even stronger profit growth.

One broker that is positive on the company is Citi. It currently has a buy rating and $2.60 price target on its shares and is forecasting an 11 cents per share dividend in FY 2021. Based on the current Accent share price, this represents a fully franked 4.7% dividend yield.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to look at is Coles. It has also been a big winner from a shift in consumer spending and habits. This led to the supermarket giant delivering a strong half year result last week.

And while its cautious outlook spooked investors and led to the Coles share price sinking lower, this appears to have created a buying opportunity.

Analysts at Goldman Sachs have reaffirmed their buy rating but trimmed their price target slightly to $20.70. Based on the current Coles share price, this price target implies potential upside of 26% over the next 12 months excluding dividends. Including the 3.7% dividend yield that Goldman estimates that its shares offer, this increases to approximately 30%.

More reading

• ASX retail shares in focus as Aussies spend big in January
• Brokers name 3 ASX shares to buy right now
• The Coles (ASX:COL) share price is down 10% in two days: Time to buy?
• Why Bellevue Gold, Coles, NRW, & Perpetual shares are trading lower today
• Why the Coles (ASX:COL) share price is sinking 6% today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) was on course to record a solid gain until a sharp pullback on Friday wiped that out and more. The benchmark index fell 0.2% over the five days to end at 6,793.8 points.

Not all shares dropped lower with the market last week. Here’s why these were the best performers on the ASX 200:

EML Payments Ltd (ASX: EML)

The EML Payments share price was the best performer on the ASX 200 last week with a 24.2% gain. Investors were buying the payments company’s shares following the release of its half year results. EML Payments delivered a 54% increase in group gross debit volume to $10.2 billion and a 61% jump in revenue to $95.3 million. As this growth was driven largely by its lower margin General Purpose Reloadable (GPR) segment, its net profit grew at a slightly lower rate of 30% to $13.2 million. In addition, management reinstated its guidance and is predicting strong full year growth.

Nearmap Ltd (ASX: NEA)

The Nearmap share price wasn’t far behind with a 21.3% weekly gain. Much to the dismay of an overseas short seller, investors were fighting to buy the aerial imagery technology and location data company’s shares after the release of its half year results. Nearmap reported annual contract value (ACV) of $112.2 million on a reported basis and $116.7 million on a constant currency basis. This represents a 16.1% and 21% increase, respectively, over the prior corresponding period. The company’s North American business was the key driver of its growth.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price was on form and charged 15.7% higher over the five days. Investors were buying the rare earths producer’s shares amid reports that China was looking to curb the exports of rare earth minerals that are crucial to defence industry. These materials are used to manufacture sophisticated weaponry such as fighter jets. Given its status as the largest rare earths producer outside China, this may bode well for Lynas.

Zip Co Ltd (ASX: Z1P)

The Zip share price was on form again and rose a further 14% during the period. This was despite there being no meaningful news out of the buy now pay later provider. In the middle of the week Zip responded to an ASX price query but stated that it was unaware of the reason its shares were hurtling higher. It also made no mention of speculation that it was looking at a secondary listing in the United States.

More reading

• These were the worst performing ASX 200 shares last week
• 3 reasons why the EML (ASX:EML) share price could be a buy
• ASX 200 sinks 1.3%, Cochlear soars, TWE sours
• The PWR (ASX:PWH) share price is on fire today, up 6%. Here’s why
• ASX 200 down 0.6%: Cochlear jumps, Goodman upgrades guidance

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends EML Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has recommended EML Payments and Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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