Buy BHP and these ASX dividend shares

Here's why the mining giant and these shares have been named as buys by brokers.

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Income investors certainly are a lucky bunch. The Australian share market is filled to the brim with dividend-paying shares.

But which ones could be buys right now for income investors? Let's take a quick look at three ASX dividend shares that have been given the thumbs up by analysts. They are as follows:

BHP Group Ltd (ASX: BHP)

The Big Australian could be a top option for income investors this month according to analysts at Morgans.

Its analysts highlight that the mining giant's "basket of market exposures share the similar characteristic of typically boasting bumper margins throughout the cycle." This means that BHP consistently generates large amounts of free cash flow, which is supportive of big dividend payments.

Morgans expects this trend to continue in the near term and is forecasting fully franked dividends of approximately ~$2.42 per share in FY 2024 and then ~$2.17 per share in FY 2025. Based on the current BHP share price of $44.77, this equates to dividend yields of 5.4% and 4.85%, respectively.

The broker has an add rating and $48.30 price target on the miner's shares.

Inghams Group Ltd (ASX: ING)

Morgans is also tipping Inghams as an ASX dividend share to buy this month. It is Australia's leading poultry producer and supplier.

The broker has described Ingham's shares as "undervalued" at current levels. Particularly given its market leadership and favourable consumer trends.

Its analysts expect this to underpin some generous dividend yields in the near term. They are forecasting 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 $3.72, this equates to dividend yields of 5.9% and 6.2%, 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 income investors should buy Orora shares.

They believe the packaging company's shares could be cheap after crashing deep into the red over the past 12 months.

In addition, Goldman expects some good yields from its shares. It 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 $1.98, this will mean yields of 6.1% and 6.55%, respectively.

The broker also sees major upside potential for its shares. It has a buy rating and $3.00 price target on them.

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. 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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