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Consider these blue chip ASX shares for strong dividend yields

Interest rates look set to remain at historic lows, at least for the next few years. So, keeping your money in a high-interest savings account or a term deposit will barely keep up with inflation. Maybe you’re currently in or nearing retirement, or maybe you are still working and just looking for a handy way to supplement your income stream?

Either way, here are 3 blue chip ASX shares to consider for strong dividend yields: Macquarie Group Ltd (ASX: MQG), Wesfarmers Ltd (ASX: WES) and Telstra Corporation Ltd (ASX: TLS).

All 3 of these companies pay attractive dividends and are well-positioned for long term growth.

Macquarie

Macquarie is a global financial services business with a core focus on international investment banking.

In terms of ASX listed blue chip shares to select from, I definitely prefer Macquarie over Australia’s big 4 major banks: Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd. (ASX: NAB) and Australia and New Zealand Banking GrpLtd (ASX: ANZ).

I’m more attracted to Macquarie due to the quality and diversity of its earnings base. In particular, it is less exposed to downturns in the local residential property market. It could be quite a rocky road ahead for this sector over the next few months.

Macquarie currently provides investors with a forward fully franked dividend yield of 3.59%.

Wesfarmers

Wesfarmers is a highly diversified business. It has operations in retail segments including general merchandise and office supplies. It also has exposure to the industrial sector with operations in energy and fertilisers, and industrial and safety products.

This high level of diversification across a broad spectrum of the Australian economy is the core strength of this blue chip ASX share.

Wesfarmers business performance during the coronavirus pandemic has been stronger than most. It revealed in early June that it has experienced particularly strong demand from both its Bunnings and Officeworks stores.

Also, Wesfarmers offers investors a forward fully franked dividend yield of around 3.55% right now.

Telstra

Another blue chip ASX share I would consider buying now for strong dividend yield is Australia’s largest telco provider, Telstra. It currently offers investors a handy forward fully franked dividend yield of around 3.1%.

Telstra has been restructuring into a leaner company, so it can remain in a dominant no. 1 market position. Telstra also has had to absorb increased investments in its 5G network to gain an upper hand in this emerging market. However, these investments are now paying off. It is currently a world leader in terms of 5G network rollouts.

I believe that 5G could be a real game-changer for Telstra. The 5G network has the potential to offer even faster broadband speeds than the NBN.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor Phil Harpur owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, Telstra Limited, and Westpac Banking. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. 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 Scott Phillips.

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