Invest in BHP and These ASX Dividend Shares

Income investors in the Australian share market have a wealth of options when it comes to upcoming dividend-paying stocks. Analysts have identified several ASX-listed companies that are particularly appealing for their dividend potential. Let's delve into three top picks recommended by leading brokers with upcoming dividend yields.

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BHP Group Ltd (ASX: BHP)

BHP Group, known as "The Big Australian," stands out as a prime choice for income investors, according to analysts at Morgans. The mining giant's diversified portfolio and robust market exposures consistently deliver strong margins across economic cycles. This profitability translates into substantial free cash flow, which supports BHP's significant dividend payments.


Morgans forecasts fully franked dividends of approximately $2.42 per share for FY 2024 and $2.17 per share for FY 2025. With BHP's current share price at $44.77, these dividends equate to impressive yields of 5.4% and 4.85%, respectively. The brokerage firm maintains an "add" rating on BHP with a target price of $48.30, reflecting confidence in its dividend-paying capabilities.

Inghams Group Ltd (ASX: ING)

Inghams Group, Australia's leading poultry producer and supplier, is another top pick for dividend-seeking investors highlighted by Morgans. The brokerage views Inghams' shares as undervalued, considering its market leadership and favorable consumer trends in the poultry sector.


Analysts at Morgans anticipate fully franked dividends of 22 cents per share in FY 2024 and 23 cents per share in FY 2025. At the current share price of $3.72, these dividends offer attractive yields of 5.9% and 6.2%, respectively. With an "add" rating and a price target of $4.40, Morgans underscores Inghams' potential for delivering robust dividend returns.

Orora Ltd (ASX: ORA)

Goldman Sachs recommends Orora Ltd as a compelling choice for income investors seeking value in the current market environment. The packaging company's shares have experienced a significant decline over the past year, presenting an opportune entry point.


Goldman Sachs projects dividends of 12 cents per share for FY 2024 and 13 cents per share for FY 2025. With Orora's current share price at $1.98, these dividends translate to attractive yields of 6.1% and 6.55%, respectively. The brokerage firm maintains a "buy" rating on Orora with a target price of $3.00, highlighting substantial upside potential in addition to generous dividend yields.


These ASX dividend shares—BHP Group, Inghams Group, and Orora Ltd—emerge as standout opportunities for income investors looking to capitalize on strong dividend-paying stocks in the Australian market. Analyst recommendations from Morgans and Goldman Sachs underscore the financial health, market positions, and dividend potential of these companies. Investors can also explore the "Dividend Income Stock Report" for deeper insights into these picks, offering promising avenues for stable income and potential capital appreciation in today's complex market landscape.

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