The share market is full of a variety of businesses. Some are smaller stocks that have a lot of growth potential. Other shares are mature blue chips with big profit margins and big dividends.
Here are three blue chips with big dividends:
Insurance Australia Group (ASX: IAG)
Insurance Australia is one of the largest insurance companies in Australia. It has a number of brands in its stable including NRMA, CGU, SGIO, SGIC, Swann and WFI.
Warren Buffet's Berkshire Hathaway can be counted among the shareholders, which is a big vote of confidence for the business.
Insurance Australia Group is currently trading at 19x FY18's estimated earnings with a grossed-up dividend yield of 5.58%.
National Australia Bank Ltd (ASX: NAB)
NAB may not be seen as the safest bank of the big four but I think it's the most forward thinking. The overseas expansion didn't work but seeking other markets was the right thing to try.
I've been impressed with how NAB has linked with the most up-and-coming businesses like Xero FPO NZX (ASX: XRO) and REA Group Limited (ASX: REA). It's this new, technology-linked finance that will be the growth driver over the next two to three years.
NAB is currently trading at 13x FY18's estimated earnings with a grossed-up dividend yield of 9.16%.
Crown Resorts Ltd (ASX: CWN)
I recently looked at whether Crown's report made it more attractive at the current share price and concluded it could be good for long-term investors.
However, its current partially franked dividend yield of 5.14% is quite large for a growing business and could be a decent choice for income seekers.
Crown is currently trading at 21x FY18's estimated earnings.
Foolish takeaway
Although Crown doesn't have the biggest dividend yield I think it will deliver the largest total shareholder returns of the three over the next decade because Crown Sydney should be a big boost.
