2 ASX income shares with 20%+ upside and 6%+ dividend yields

Analysts think big returns could be on the cards for buyers of these shares.

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If you're hunting for an income boost, then it could pay to look closely at the ASX shares listed below.

That's because analysts are feeling bullish on these income options and recently put the equivalent of buy ratings on their shares.

Here's what sort of dividend yields and gains you could expect to receive from these ASX income shares:

Deterra Royalties Ltd (ASX: DRR)

The first ASX income share that analysts think investors should be buying is Deterra Royalties.

It is focused on the management and growth of a portfolio of royalty assets across a range of commodities, primarily bulks, base, and battery metals. Its portfolio includes royalties held over Mining Area C, its cornerstone asset, in the Pilbara region of Western Australia, as well as five smaller royalties including Yoongarillup/Yalyalup, Wonnerup, Eneabba and St Ives.

Morgan Stanley is positive on the company and believes its portfolio has positioned it to reward shareholders with some big dividends in the near term.

For example, it is forecasting fully franked dividends per share of 32.7 cents in FY 2024 and then 39 cents in FY 2025. Based on the current Deterra Royalties share price of $4.54, this will mean sizeable dividend yields of 7.2% and 8.6%, respectively.

Morgan Stanley currently has an overweight rating and $5.60 price target on its shares. This implies potential upside of 23% for investors.

Inghams Group Ltd (ASX: ING)

Another ASX income share that analysts think could be a buy for investors right now is Inghams.

It is one of the largest integrated protein producers across Australia and New Zealand, providing chicken, turkey, and plant‑based protein products.

Morgans thinks investors should invest in Inghams while its shares are cheap. The broker notes that "ING remains undervalued trading on a low PE multiple, especially for what is a market leader, with a vertically integrated operating model and assets that are difficult and costly to replicate."

Another positive is that its analysts are forecasting some big dividend yields in the near term. They expect the company to be in a position to pay fully franked dividends of 22 cents per share in FY 2024 and then 23 cents per share in FY 2025. Based on the current Inghams share price of $3.47, this equates to dividend yields of 6.3% and 6.6%, respectively.

Morgans has an add rating and $4.40 price target on its shares. This suggests that upside of 27% is possible over the next 12 months.

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 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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