If you’re in the market for 3 blue chip ASX shares with fully franked dividends, chances are, the following three companies will be on your watchlist.

  1. Wesfarmers Ltd (ASX: WES)

Wesfarmers is the owner of Kmart, Coles, Target, Bunnings Warehouse, Officeworks and more. It’s Australia’s premier retailing business and continues to grow after more than 100 years in operation. It’s an old-school conglomerate style business, with multiple assets under one roof.

At today’s share price of around $41.56, Wesfarmers shares look a little pricey. But with a 4.9% fully franked dividend and long-term growth on the cards, it may be worthy of a second look.

  1. Telstra Corporation Ltd (ASX: TLS)

Every mobile phone or internet user in Australia knows Telstra. The $63 billion telecommunications heavyweight has undergone some significant changes in recent years, transforming itself from an infrastructure-heavy business to a nimbler technology business.

Telstra’s share price has fallen from over $6.50 to its current price of $5.16 in less than a year. Investors could be reacting to expectations of slower growth and increasing competition from the likes of TPG Telecom Ltd (ASX: TPM) and Vocus Communications Limited (ASX: VOC). However, at today’s share price, it’s forecast to pay a fully franked dividend equivalent to 6.1%.

  1. National Australia Bank Ltd. (ASX: NAB)

Frequently the highest yielding big bank share, National Australia Bank has also taken strides to improve its balance sheet and deliver a cleaner and more efficient bank for shareholders. NAB recently divested its UK subsidiary, Clydesdale and Yorkshire Banking Group — found on Google Finance under CYBG PLC CDI 1:1 (ASX: CYB). It also sold most of its Life Insurance business and raised capital to bolster its balance sheet.

NAB’s shares today trade on a price-earnings ratio of 12x and price-book ratio of 1.35x, which does not appear demanding for a blue chip share forecast to pay a fully franked dividend equivalent to 7.2%. However, risks persist.

Foolish takeaway

There are many blue chip shares listed on the ASX offering big dividend yields. However, it’s vital you focus on more than just the dividend yield. Conduct thorough research on the business and pay a reasonable price for the shares you want to own.

In my opinion, all of these blue chip shares are outside the buy zone and investors may want to wait for a lower price before buying in.

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Motley Fool Contributor Owen Raszkiewicz has a financial interest in Vocus Communications. Owen welcomes -- and encourages -- your feedback on Google+, LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.