Analysts name 3 ASX income stocks to buy now

Looking for income? Check out these buy-rated stocks.

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The Australian share market is a great place to generate a passive income.

But which ASX stocks would be good options for income investors right now?

Let's take a look at three ASX income stocks that analysts have recently named as buys:

Inghams Group Ltd (ASX: ING)

The team at Morgans thinks that income investors should be looking at Australia's leading poultry producer, Inghams.

Its analysts believe the company's shares are being undervalued by the market. Particularly given its leadership position and attractive dividend yield. Morgans also highlights that the company is "leveraged to poultry – the affordable, healthy, sustainable and growth protein." This bodes well for the future.

As for those attractive dividend yields, Morgans is expecting 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 $3.67, this equates to dividend yields of 6% and 6.25%, respectively.

Morgans has an add rating and $4.40 price target on its shares.

Orora Ltd (ASX: ORA)

Over at Goldman Sachs, its analysts think that Orora could be an ASX income stock to buy. It is one of the world's largest packaging companies. It manufactures packaging products such as glass bottles, beverage cans, and corrugated boxes.

Goldman appears to believe a selloff this year has created a buying opportunity for patient investors. Especially given its cheap valuation and above-average dividend yields.

In respect to the latter, the broker is forecasting dividends per share of 12 cents in FY 2024 and 13 cents in FY 2025. Based on the current Orora share price of $2.19, this will mean yields of 5.5% and 5.9%, respectively.

Goldman has a buy rating and $3.00 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

A third ASX income stock to buy could be Super Retail. It is the owner of popular retail brands BCF, Macpac, Rebel, and Super Cheap Auto.

Goldman Sachs is also a fan of Super Retail and thinks it would be a great option for income investors. Especially given its loyalty program. Its analysts continue to "believe that SUL is building a competitive advantage through 11.1mn members and 76% sales to members, which will help drive sales in a more complex operating environment."

Goldman believes this positions the company to pay fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $13.23, this will mean yields of 5% and 5.5%, respectively.

Goldman has a buy rating and $17.80 price target on its shares.

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 positions in and has recommended Goldman Sachs Group and Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Orora. 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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