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Are you building an income portfolio? If you are, you might want to take a look at these highly rated ASX dividend shares.

Here’s what you need to know about them:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The big four banks have seen their shares shoot higher this year. The ANZ share price, for example, is up 26% since the start of the year.

The good news is that it doesn’t appear to be too late to invest for both capital returns and dividends.

According to a recent note out of Morgans, its analysts have retained their add rating and lifted their price target on its shares to $33.50.

The broker is also forecasting fully franked dividends of $1.54 per share in FY 2021 and $1.75 per share in FY 2022. Based on the current ANZ share price, this will mean yields of 5.3% and 6%, respectively, over the next couple of years.

Morgans believes the outlook for the banks is becoming increasingly positive thanks to home loan growth, favourable credit spread movements, and lower than expected impairments.

Transurban Group (ASX: TCL)

Another ASX dividend share to look at this toll road operator.

Transurban owns a collection of important roads in Australia and North America such as CityLink in Melbourne and the Cross City Tunnel and Eastern Distributor in Sydney.

While COVID-19 has led to a notable decline in traffic on its roads, volumes are recovering and are expected to continue doing so in the near term. Particularly given the significant time-savings these roads have.

Ord Minnett is positive on the company and recently retained its buy rating and $16.00 price target on its shares.

Its analysts are forecasting dividends of 37 cents per share in FY 2021 and 58 cents per share in FY 2022. Based on the latest Transurban share price, this equates to yields of 2.7% and 4.2%, respectively, over the next two years.

More reading

• 2 quality ASX dividend shares for May
• ASX bank shares best placed to ride the $1bn+ provisioning profit boost this reporting season
• What could APRA’s climate guidance mean for ASX bank shares?
• Is the Commonwealth Bank (ASX:CBA) share price a buy at $90?
• Is the CBA (ASX:CBA) share price a buy for a recovery of dividends?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban 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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Rural Funds Group (ASX: RFF) is a really good ASX dividend share to consider for an income portfolio.

It’s one of the few real estate investment trusts (REITs) that isn’t focused on retail, office or warehouses.

Here’s why Rural Funds is a really good ASX dividend share

Diversification

Rural Funds has a diverse portfolio of a few different farming sectors. They are: almonds, macadamias, cattle, vineyards and cropping (cotton and sugar). It has a total of 67 properties in its portfolio.

Being spread across different sectors lowers the risk if any particular sector goes through long-term problems. However, it’s important to note that it’s the tenants that carry the operational risk of the farming. Rural Funds also owns substantial water entitlements for tenants to use. That can be particularly useful during drier periods, such as what has happened over the last few years.

The farms are also diversified when it comes to the location of the properties. They are spread across different states and climactic conditions.

It has a long weighted average lease expiry (WALE) of 11.1 years, which is one of the longest in the REIT space.

Growth expectations

The ASX dividend share doesn’t just have a diverse portfolio. It also provides growth.

Management have a goal of growing the distribution by 4% each year. This is comfortably more than long-term inflation. It has been successful with this goal since it started paying a distribution several years ago.

That distribution growth is funded by annual rental increases at the farms. Those increases are funded by a fixed 2.5% rental indexation at some farms, whilst others are linked to CPI inflation, plus market reviews.

Rural Funds is also able to grow its distribution thanks to investments at the farms. It keeps some of its rental profit back each year to re-invest into those farms to make them more productive and efficient for the benefit of tenants.

Acquisitions and divestments

The ASX dividend share is happy to make acquisitions or divestments to improve the portfolio.

For example, it used to have a segment of poultry assets. But it divested those assets.

Rural Funds occasionally makes acquisitions to diversify the portfolio. Cattle has been a focus for acquisitions in recent years, which offers a good combination of income and growth.

What’s the Rural Funds yield?

Rural Funds recently announced the FY22 distribution guidance of 11.73 cents per unit. That translates to a forward distribution yield of 5%.

In the FY21 half-year result, Rural Funds said that its adjusted net asset value (NAV) per unit increased by 4% to $2.01. This compares to the current Rural Funds share price of $2.37.

More reading

• 2 ASX dividend shares that could be great alternatives to term deposits
• 2 ASX dividend shares with very generous yields
• 2 quality ASX dividend shares for income investors
• 2 ASX dividend shares that keep growing their dividend every year
• 2 top ASX dividend shares to buy this month

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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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On Wednesday the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.45% to 7,064.7 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to rise again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.25% higher this morning. This is despite weakness on Wall Street overnight, which saw the Dow Jones fall 0.5%, the S&P 500 edge 0.1% lower, and the Nasdaq drop 0.3% higher. This follows the US Federal Reserve’s meeting.

Woolworths third quarter update

Hot on the heels of the Coles Group Ltd (ASX: BHP) third quarter update on Wednesday, this morning rival Woolworths Group Ltd (ASX: WOW) will be releasing one of its own. According to a note out of Goldman Sachs, it expects Woolworths to report revenues of $16.3 billion for the third quarter. This will be down 1% on the prior corresponding period.

Oil prices rise

It could be a positive day for energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) after oil prices climbed higher. According to Bloomberg, the WTI crude oil price is up 1.3% to US$63.74 a barrel and the Brent crude oil price has risen 1.1% to US$67.09 a barrel. Optimism over fuel demand gave prices a lift.

Gold price higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Resolute Mining Limited (ASX: RSG) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.2% to US$1,781.90 an ounce. The gold price rose after the US Federal Reserve decided to keep rates on hold at zero.

Newcrest update

The Newcrest Mining Limited (ASX: NCM) share price will be on watch today when it releases its third quarter update. Investors will be keen to see if the gold mining giant is still on course to achieve its guidance in FY 2021. Newcrest is targeting gold production of 1,950,000 ounces to 2,150,000 ounces of gold this year.

More reading

• ASX 200 rises, Kogan jumps, gold miners sold off
• Downer (ASX:DOW) share price may only be at start of a capital return cycle
• The ASX 200 just had its slowest quarter in 12 months
• Should CSL (ASX:CSL) be your next dividend share?
• Why the Sandfire (ASX:SFR) share price jumped to a 2-year high 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 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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The S&P/ASX 200 Index (ASX: XJO) rose by 0.9% today to 7,065 points.

Here are some of the highlights from the ASX today:

Kogan.com Ltd (ASX: KGN)

The e-commerce business answered an ASX query document asking for clarification about the various numbers and financial statistics that Kogan reported last week about its performance for the three months to 31 March 2021.

Some of the main queries related to providing more detail about the split of performance and growth between the two businesses of Kogan.com and Mighty Ape.

Kogan did so, stating that total sales for the quarter were up 47.7% within the group, but Kogan.com sales rose 32.8%. Total gross profit rose 54.9% to $44 million, with Kogan.com gross profit rising 33.5% to $37.9 million.

Total adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 24.8% to $7.2 million, whilst Kogan.com adjusted EBITDA dropped 42.7% to $5.5 million.  

Kogan also said it does not intend to provide quarterly updates about specific balance sheet items such as inventory and cash on an ongoing basis.

The Kogan share price rose 7% in response, making it one of the best performers in the ASX 200.

Westpac Banking Corp (ASX: WBC)

The Westpac share price rose more than 1% today.

Westpac announced that the bank has agreed to settle a class action relating to premiums paid for certain insurance policies taken out with Westpac Life Insurance Services Limited between 2011 and 2017.

The settlement is capped at $30 million and remains subject to approval by the Federal Court of Australia.

Westpac said it has resolved this matter without any admission of liability.

Airtasker Ltd (ASX: ART)

The Airtasker share price shot higher by 7.8% today after giving a trading update to the market.

Management said that the business had a strong FY21 third quarter performance, which was ahead of prospectus assumptions.

It said that metrics for the quarter are ahead of forecasts resulting in FY21 gross merchandise value (GMV) and revenue tracking ahead of forecast.

For the three months to 31 March 2021, GMV was $41.2 million, representing 57.9% of the second half of FY21 prospectus forecast of $71.3 million. It now expects GMV to be in a range of $148 million to $152 million, instead of $143.7 million in the prospectus forecast.

Revenue for the three months was $7.1 million, being 59.7% of the second half of FY21 prospectus forecast of $11.9 million. The company has upgraded its FY21 revenue forecast to a range of $25.5 million to $26 million, up from the forecast of $24.5 million.

In terms of cashflow, including IPO costs, Airtasker generated $484,000 of positive operating cashflow. Excluding IPO costs, the business generated $2.1 million of positive operating cashflow for the quarter.

Gold miners suffer

The gold miners were among the worst performers in the ASX 200 today.

Looking at the worst two declines in the index, the Ramelius Resources Limited (ASX: RMS) share price fell 9.2% and the St Barbara Ltd (ASX: SBM) share price dropped 7.9%.

More reading

• Downer (ASX:DOW) share price may only be at start of a capital return cycle
• The ASX 200 just had its slowest quarter in 12 months
• What’s triggered the 7% Kogan (ASX:KGN) share price surge?
• Why the Gold Road (ASX:GOR) share price was smashed today
• Why JB Hi-Fi, Link, Ramelius, & St Barbara shares are tumbling lower

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com 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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There certainly are a lot of options for investors to choose from on the Australian share market.

But three that could be fantastic options right now are listed below. Here’s what you need to know about them:

REA Group Limited (ASX: REA)

The first ASX share to look at is REA Group. It is the property listings company behind the market-leading realestate.com.au website and several international equivalents. It has been a strong performer over the last few years despite the housing market downturn. So, with the housing market rebounding this year, its medium term outlook is looking very positive.

Morgan Stanley is positive on the company and has an overweight rating and $175.00 price target on its shares. The REA Group share price ended the day at $158.59.

SEEK Limited (ASX: SEK)

Another ASX share to consider is this job listings giant. SEEK could be a great investment option thanks to its investments in growth opportunities, its domination of the ANZ market, and its growing international operations. Combined, SEEK appears well-positioned to deliver strong revenue growth over the next decade.

Credit Suisse is a fan of SEEK. Its analysts currently have an outperform rating and $34.00 price target on its shares. The SEEK share price closed at $32.10 on Wednesday.

Zip Co Ltd (ASX: Z1P)

Finally, this buy now pay later provider could be a great long term option for investors. This is due to the growing popularity of the payment method with consumers and merchants, the demise of credit card usage, and its international expansion. The latter includes US-based QuadPay business, which has a $5 trillion market opportunity.

One broker that is bullish on Zip is Citi. Earlier this month the broker upgraded the company’s shares to a buy rating with an $11.30 price target. This compares to the latest Zip share price of $8.12.

More reading

• Openpay (ASX:OPY) share price slides despite positive quarterly update
• ASX 200 falls, BHP rises, Afterpay sinks
• Why has the Zip (ASX:Z1P) share price plunged 6% today?
• Province Resources and Zip were among the most traded ASX shares last week
• ASX 200 down 0.5%: Bingo & Tabcorp takeovers, BlueScope upgrades guidance

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has recommended REA Group Limited and SEEK 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 S&P/ASX 200 Index (ASX: XJO) had a real growth rate of only 1.0% in the March 2021 quarter. It was the slowest rate of change for the index in the past year. It should be noted the previous three quarters were thrown into turmoil by the effects of the COVID-19 pandemic.

The real growth rate is calculated by subtracting the consumer price index (CPI), or inflation, from the share market’s rate of growth. The ASX 200 grew by 1.6% and inflation was 0.6% for the quarter. CPI figures were released today by the Australian Bureau of Statistics (ABS).

Slow quarter in a fast year

While the previous quarter may have been slow, the last year has been anything but for the ASX 200. It had a real growth rate of 28.0% between 1 April 2020 and 31 March 2021 (29.1% minus 1.1% CPI).

Each quarter was wildly different to the last. The three months to June saw the ASX 200 appreciate 14.1%, for September the index shrunk 3.6% in real terms and the December quarter saw the 200 largest ASX shares increase in real value by 11.3%.

Harley Dale, chief economist at CreditorWatch, said today’s diminished inflation figures mean the question of further monetary policy is not out of the question.

“The RBA will naturally analyse the detail and composition of the [CPI] result,” Mr Dale commented.

“In the short term though it is…about [whether] the RBA will inject further monetary stimulus into the Australian economy”.

“We need faster inflation, which is ironic given how many years (decades) we spent fighting high inflation. Wages growth is key and we have yet to see signs of a re-emergence of life in that key metric,” Mr Dale added.

Motley Fool Australia previously reported on how cheap money, via low-interest rates, has been good news for investors.

Have you missed the ASX 200 gravy train?

After seeing the ASX 200’s relatively slow growth rate for the March quarter, you might be thinking you have missed your chance to invest. Motley Fool Australia’s chief investment officer, Scott Phillips, says historically that’s never been true.

“History says the ASX has always gone higher and higher over the long term,” Mr Phillips said.

“Avoiding investing at the top of the market is always a mistake. It could go on for another 10, 20, or 30% before dropping 10. You don’t know where the top will be until you’ve passed it.”

If you are a more risk-averse person, you might be considering investing in something that just follows the share market rather than taking your chances on individual companies. One option is to buy into an exchange-traded fund (ETF). ETFs are designed to track the performance of certain indices, like the ASX 200.

Scott Phillips says that, while he loves ETFs in general, he believes investors need to be wary about buying into those that track the ASX 200.

“I love ETFs as a rule, wonderful way for people who don’t want to pick stocks to make money. I do have an issue with ASX 200 ETFs. The index is dominated by banks and miners. It’s not diversified enough.”

“Even ETFs that track the NASDAQ, which is tech heavy, is more diversified than the ASX 200.”

However, Mr Phillips did add that buying into any ETF, including an ASX 200 one, is better than nothing.

“Go for it if you want to do something, but it’s riskier than other ETFs out there.”

More reading

• Downer (ASX:DOW) share price may only be at start of a capital return cycle
• Should CSL (ASX:CSL) be your next dividend share?
• Why the Sandfire (ASX:SFR) share price jumped to a 2-year high today
• ASX 200 up 0.5%: Coles Q3 update, Westpac settles class action, JB Hi-Fi loses its CEO
• Record high iron ore price puts these ASX shares in the spotlight this morning

Motley Fool contributor Marc Sidarous 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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The Downer EDI Limited (ASX: DOW) share price surged to a more than one-year high after announcing a massive share buyback.

This may only mark the start of a multi-year capital return program, according to Morgan Stanley.

The Downer share price jumped 7.3% to $5.71 on Wednesday – making it the top performer on the S&P/ASX 200 Index (Index:^AXJO).

The Kogan.com Ltd (ASX: KGN) share price is in second spot with a 7.1% increase and Cleanaway Waste Management Ltd (ASX: CWY) share price is in third with a 5% gain.

Big capital return boosts the Downer share price

Coming back to Downer, shares in the engineering contractor soared after it said it would undertake an on-market share buyback of up to 70.1 million shares. That’s around 10% of its total shares on offer.

A share buyback is one way ASX companies can return capital to shareholders. While it doesn’t put cash directly back in shareholders’ pockets, the exercise increases earnings per share (EPS) by reducing the total shares on issue.

But don’t rule out other capital return initiatives from Downer down the track.

More capital returns ahead for the Downer share price

“In our view, the capital management initiative demonstrates confidence in the underlying business and outlook,” said Morgan Stanley.

“If Downer can demonstrate earnings stability, we think it can trade on higher multiples over time. With lower capex post mining and growing earnings, this could be part 1 of a multi-year capital management story.”

The broker has an “overweight” (equivalent to “buy”) recommendation on the Downer share price. Its 12-month price target on the ASX share is $6.20.

Other capital management options

Other capital return initiatives include things like issuing a special dividend on top of its regular dividend, paying cash back to shareholders as a capital return and doing an off-market share buyback.

Each of these can often have positive tax implications for shareholders.

Morgan Stanley isn’t the only broker that issued a bullish note on the Downer share price. Goldman Sachs also reiterated its “buy” call on the shares.

Up to $1bn in available capital

Goldman is forecasting that Downer’s proforma gearing will drop to just 16.5%, well below management’s target range of 25% to 35%.

“We believe DOW has significant capital return flexibility from the company’s ongoing portfolio transformation efforts,” said the broker.

“We estimate DOW has A$409-A$1,026mn of balance sheet capacity should the company re-leverage to historical gearing targets post the proposed transactions (if completed).”

Goldman’s 12-month price target on the Downer share price is $6 a share.

More reading

• What’s triggered the 7% Kogan (ASX:KGN) share price surge?
• Should CSL (ASX:CSL) be your next dividend share?
• Why the Sandfire (ASX:SFR) share price jumped to a 2-year high today
• Why Airtasker, Appen, Downer, & Kogan shares are charging higher
• ASX 200 up 0.5%: Coles Q3 update, Westpac settles class action, JB Hi-Fi loses its CEO

Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com 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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What was once the flavour of the time, ASX-listed infant formula companies have gone off this year. To be fair to 2021, the decline had begun around the middle of last year. But that hasn’t stopped this year from adding to the share price pain of companies like A2 Milk Company Ltd (ASX: A2M).

The boom of A2 Milk and infant formula share prices

There was a time when milk was like liquid gold, with the main boom from the infant formula market. If you took a quick look at the share prices of many ASX-listed infant formula makers, you’d see the initial uptick began in 2017.

From there, it was nothing but blue skies. Speculators piled in as the Chinese market showed stronger demand for Australian formulated milk. A2 Milk overtook Blackmores Ltd (ASX: BKL) in market capitalisation as the story gained pace.

Sure enough, investors turned to riskier small caps hoping to replicate the same success. Companies such as Bubs Australia Ltd (ASX: BUB) and Wattle Health (ASX: WHA) caught the coattails of the rapidly growing industry.

Until one day the growth story became growth history.

Three ASX-listed infant formula shares ravaged

Clover Corporation Ltd (ASX: CLV)

Likely the least known on this, though surprisingly not the smallest in value, Clover Corporation has handled the unfavourable environment reasonably well. For starters, the company’s share price is up 17.6% year-to-date.

Clover Corp has likely benefitted from its diversified business. Although the company is focused on infant formula, its powders are also used in bread, yoghurt, health bars etc.

However, this didn’t prevent the company from taking a hit to its revenue and earnings from a decrease in demand. Clover reported a 21.7% revenue decline year-on-year to $29.4 million in H1 FY21. Net profit also declined 45.8% to $2.5 million.

Bubs Australia Ltd (ASX: BUB)

Bubs were one of the small ASX-listed companies that investors clung to through the hype. Being relatively small, the company’s unique goat infant formula products generated rapid revenue growth in percentage terms.

Unfortunately, Bubs’ success story was highly contingent on sales into China’s Daigou channel. As fate would have it, COVID-19 brought abrupt disruptions to this core growth lifeline. In the company’s 1H FY21 result, it notes this was partly offset by strong local momentum. Regardless, COVID took a 23% bite out of the company’s gross revenue compared to the prior corresponding period.

As you might have guessed, a small company making losses, losing its growth is devastating. The Bubs share price year-to-date reflects shareholder’s disappointment — shaving off 31%.

A2 Milk Company Ltd (ASX: A2M)

The grandaddy of ASX infant formula is A2 Milk. Arguably one of the biggest success stories of the ASX in recent times, maybe behind a few tech companies. It has scaled from an over $100 million revenue company to an over $1.5 billion revenue company in the space of six years.

A2 Milk has become a household name — both from a product perspective and as an investment. But the story gave way to significant disruptions of its daigou sales channel as well. Total revenue for the company declined 16% to NZ$677.4 year-on-year.

Losing that continuous growth streak meant investors lost their willingness to pay a high premium for the A2 Milk share price, leading to a sizeable selloff. In specific terms, shares have now fallen 39.4% YTD and 64.4% from its peak.

More reading

• Why a2 Milk, Atlas Arteria, Audio Pixels, & Nickel Mines shares are sinking
• The A2 Milk (ASX: A2M) share price is at a 3-year low
• Why these ASX shares just hit 52-week lows or worse
• Bubs (ASX:BUB) share price hits multi-year low but could keep sinking
• Why Bubs, Carbon Revolution, Paradigm, & Tyro shares are sinking

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Its been a volatile quarterly reporting season with unpredictable price action for many S&P/ASX 200 Index (ASX: XJO) shares.

Big brokers have run the ruler over recent quarterly updates and think these ASX 200 shares might be worth a look at. 

Buy-rated ASX 200 shares 

Nickel Mines Ltd (ASX: NIC) 

The Nickel Mines share price plunged 12% on Tuesday after its third-quarter update revealed financial and operational weakness across the board. 

Citi has weighed in on the results, citing its December quarter product of 10.07kt was 4% below the broker expectations. Cash costs of US$3,683/t were also 7% higher than what was expected. Despite the misses, Citi was neutral rated in Nickel Mines shares with a $1.50 target price. 

Elsewhere, Credit Suisse and Macquarie remained bullish on the nickel producer, rating its shares as outperform with a respective $1.50 and $1.30 target price.

Credit Suisse believes the company’s structurally low cost position should sustain the company’s margins and cash flows under a range of nickel price scenarios. While Macquarie took a more long-term view, stating the company is set to double production over the next three years. 

Despite the positivity from brokers, Nickel Mines share price fell another 4.87% to $1.08 today. 

Reliance Worldwide Corporation Limited (ASX: RWC) 

It was a volatile trading session for Reliance Worldwide on Tuesday following a positive quarterly trading update. Its shares surged almost 10% at market open, then rolled over into negative territory before clawing back to close 5% higher. Reliance shares are currently sitting at 2-year highs of $5.08. 

Credit Suisse was impressed with the quarterly results, citing March quarter trading was ahead of forecasts in all regions. The broker increased its estimates for net profit in FY21 by 8% and FY22 by 4%. It retained an outperform rating and raised the target price from $5.00 to $5.40. 

Most brokers were buy-rated on Reliance Worldwide with the exception of Morgan Stanley. While still positive on the quarterly update, the broker is concerned about its growth trajectory when housing and repair tailwinds come to an end. It retained an equal-weight rating with a $4.40 target price. 

South32 Ltd (ASX: S32) 

The South32 share price has been a steady gainer since the initial COVID-19 selloff in March last year. Its shares nudged 1% higher on Tuesday after releasing its March quarterly results.

South32 shares were met with 5 broker buy ratings on Wednesday, with an average target price of $3.26. The bullishness from brokers was largely driven by the strength in nickel, manganese and silver prices.

The South32 share price has climbed to a 16-month high just shy of $3.00. 

More reading

• Nickel Mines (ASX:NIC) share price plunges 12% on quarterly report
• Why a2 Milk, Atlas Arteria, Audio Pixels, & Nickel Mines shares are sinking
• Why the Reliance Worldwide (ASX:RWC) share price is down this morning
• The South32 (ASX:S32) share price is up this morning. Here’s why
• These were the best performers on the ASX 200 last week

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide 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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If you’re wanting to boost your portfolio with a couple of growth shares, then you may want to consider the ones listed below.

Here’s why these ASX growth shares have been rated as buys:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. The appliance manufacturer has been growing at a solid rate in recent years thanks to its international expansion.

This has been supported by favourable tailwinds brought about by COVID-19 such as more cooking and working at home. This has led to an increase in demand for whitegoods such as cooking equipment and coffee machines.

During the first half of FY 2021, Breville reported a 28.8% increase in revenue to $711 million and a 29.2% increase in net profit after tax to $64.2 million.

The good news is that more of the same is expected in the second half. After a stronger than expected first half, management is now guiding to earnings before interest and tax of $136 million. This is up from its previous guidance of $128 million to $132 million and will be a 20% increase year on year.

Even better, though, is that analysts at UBS believe its growth can continue for some time to come. This is due to product launches and its expansion into new markets.

UBS has a buy rating and $35.70 price target on its shares.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a leading provider of international student placement and English language testing services.

While trading conditions have been very tough for IDP Education because of the pandemic, there are signs that the worst is now over and a return to growth isn’t far away.

In fact, the company revealed that in December testing volumes were broadly in line with those experienced in the final month of 2019 prior to the pandemic. This bodes well for the second half, particularly given the roll out of vaccines across the world.

Looking ahead, due to the company’s strong financial position and growing software business, it appears well-placed to win a greater share of the market when things return to normal.

One broker that is confident in its future is Morgan Stanley. Last month it put an overweight rating and $30.00 price target on the company’s shares. The broker expects IDP Education’s earnings to bounce back strongly in FY 2022.

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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 Idp Education Pty Ltd. 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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