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5 blue chip ASX shares with 5% dividend yields

National Australia Bank Ltd. (ASX: NAB) shares, Macquarie Group Ltd (ASX: MQG) shares, Wesfarmers Ltd (ASX: WES) shares, Telstra Corporation Ltd (ASX: TLS) shares and RCG Corporation Ltd (ASX: RCG) shares offer big dividends.

Dividends ahoy!

You don’t need me to tell you that the returns from term deposits are woeful right now.

For example, a term deposit from Commonwealth Bank of Australia (ASX: CBA) is offering just 2.35%. After tax and inflation, it’s even less!

Here are five blue chip ASX shares currently tipped to offer more than 5% in dividends.

1. National Australia Bank

NAB is forecast to lower its annual dividends in the year ahead, from last year’s $1.99 per share to $1.94 per share. However, even if it does lower the payment to $1.94, its shares trade on a dividend yield of 5.5% fully franked.

2. Macquarie Group

Macquarie Group is Australia’s largest investment bank, with investing and banking operations around the world. With global markets staging a recovery, the bank is expected to continue its recent growth and pay annual dividends equivalent to 4.85%. With partial franking, the after-tax dividend yield for eligible shareholders is over 5%.

3. Wesfarmers

With $2.20 per share in forecast dividends, many investors hold Wesfarmers for its income. However, with brands like Coles, Bunnings Warehouse, Kmart, Target and more, it could also be a considered for long-term growth. It offers a 5% dividend yield at today’s prices.

4. Telstra

Telstra is another company that needs no introduction, with its fingers in many telecommunications pies. It is the Australian leader in mobiles and internet. Thanks to a recent fall in its share price, the dividend yield on offer from Telstra shares currently stands at over 6% fully franked, according to analyst forecasts.

5. RCG Corporation

RCG may be too small to be considered a blue-chip but it deserves some attention from shrewd long-term investors. RCG is a footwear distributor, with brands such as Merrel, Timberland, Saucony, CAT and more under its banner. It also owns and operates The Athlete’s Foot, Platypus, Podium Sports, SHUbar and Hype DC. It is forecast to offer a 5.5% dividend.

Foolish Takeaway

Shares are riskier than term deposits and savings accounts. Indeed, there is no guarantee that your shares will perform well or even pay a dividend. Nonetheless, I think each of these companies should be on your watchlist.

If I were to buy one it would be Macquarie Group, but I’m waiting for a lower price before buying in.

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen encourages your feedback. You can follow him on Twitter @OwenRask.

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.

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