Although the market recently hit a record high, not all ASX shares are flying high.
For example, the ASX shares listed below could be considered cheap at current levels.
And even better, they are offering investors 4.5% to 6% dividend yields according to analysts. Here's what you need to know about them:
Inghams Group Ltd (ASX: ING)
Analysts at Morgans thinks that Australia's leading poultry producer and supplier could be a cheap ASX share to buy.
The broker notes that Inghams is "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."
In respect to dividends, it is forecasting fully franked dividends of 22 cents per share in FY 2024 and FY 2025. Based on the current Inghams share price of $3.63, this equates to dividend yields of 6.1%.
Morgans has an add rating and $4.25 price target on its shares. This suggests that upside of 17% is possible over the next 12 months.
Qantas Airways Limited (ASX: QAN)
Another cheap ASX share to look at is airline operator Qantas. It could be a great option for patient income investors. That's because the Flying Kangaroo is being tipped to resume paying dividends in the near future.
For example, Goldman Sachs doesn't believe there will be dividends in FY 2024 but expects 30 cents per share payouts in FY 2025 and FY 2026. Based on the current Qantas share price of $6.02, this will mean dividend yields of 5% for investors.
In the meantime, the broker believes that Qantas' shares could rise materially from where they trade today. It has a buy rating and $8.05 price target, which implies potential upside from current levels.
Telstra Group Ltd (ASX: TLS)
Goldman Sachs also appears to believe that Telstra could be a cheap ASX share. Particularly given "the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business."
In addition, the broker sees opportunities for Telstra to unlock value by divesting assets. It highlights that "Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn."
As for income, Goldman is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.88, this equates to yields of 4.6% and 4.9%, respectively.
Goldman has a buy rating and $4.30 price target on its shares. This suggests that upside of 11% for investors from current levels.
