Blue chip ASX shares with dividends greater than 5% are plentiful within the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).

Moreover, many of them offer franking credits. Franking credits enable dividends to be tax effective when compared to ordinary unfranked payments and, therefore, will have the effect of boosting eligible shareholders’ after-tax cash returns.

5 blue-chip ASX shares with dividends more than 5%

Telstra Corporation Ltd (ASX: TLS)

Telstra is a name synonymous with telecommunications in Australia. The company is a leader in the mobiles, fixed broadband and network application services market. In recent years, however, Telstra began expanding its operations in Asia, a market where it sees long-term growth opportunities. Investors may have to wait some years for the Asian expansion to come to fruition, but Telstra shares are forecast to pay a dividend equivalent to 6% fully franked.

Westpac Banking Corp (ASX: WBC)

Westpac is Australia’s second-largest retail bank. It offers shareholders exposure to the residential property market, personal lines of credit and business banking. Westpac also has a significant presence in New Zealand. Westpac shares are forecast to pay a dividend equivalent to 5.8% fully franked in the next 12 months.

Rio Tinto Limited (ASX: RIO)

Rio Tinto is Australia’s second-largest miner and the world’s second-largest producer of iron ore. It also has substantial operations covering coal, copper, aluminum and uranium. The company’s shares came under pressure in recent months as commodity prices began to fall as China’s demand for raw materials waned. Looking ahead, the markets for iron ore, copper and coal are expected to remain subdued. Nonetheless, Rio Tinto shares have a trailing yield of 5.8% fully franked.

Woolworths Limited (ASX: WOW)

After years of growing competition within the grocery market, Woolworths shares have come under significant selling pressure. Indeed, Australia’s largest supermarket operator has been forced to cut its dividend and shore up its balance sheet ahead of an impending price war with Coles. Aldi, the German supermarket giant, is also taking its toll on Woolworths’ profit margins. Despite the reduced payout, Woolworths shares trade on a dividend equivalent to 5.1% fully franked.

Insurance Australia Group Ltd (ASX: IAG)

Insurance Australia Group is the name behind popular insurance brands such as NRMA, CGU, SGIO, Swann Insurance and more. It also has operations throughout Asia. Although the company is forecast to report just modest growth in earnings per share in coming years, it is expected to pay a dividend equivalent to more than 5% fully franked.

Foolish takeaway

More than just a dividend forms an investment thesis. Indeed, investors should look beyond the dividend and focus on the underlying business before purchasing shares in any company. In my opinion, of the above five companies, Telstra represents the best value at today’s prices. However, I’d wait for a lower share price before buying in.

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. 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.