Buy these blue chip ASX dividend shares for income

I think Australia and New Zealand Banking GrpLtd (ASX:ANZ) and this blue chip ASX dividend share could be top options for income investors…

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If you're planning to buy some dividend shares this week, then you might want to consider the ones listed below.

I think these ASX dividend shares are top option for income investors right now. Here's why:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

Rather than put money into its savings accounts or term deposits, I think investors would be better off buying this banking giant's shares. At approximately 0.9x estimated FY 2021 book value, I think ANZ's shares could be great value after their sizeable pullback this year.

And while the bank will almost certainly have to cut its dividend further in FY 2021, I believe the recent share price weakness means that it will still provide investors with an above-average yield. I currently expect ANZ to pay its shareholders a partially franked dividend of $1.05 per share in FY 2021. Based on the latest ANZ share price, this will provide investors with a very attractive forward 5.7% yield.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share to consider buying is this conglomerate. I think Wesfarmers is a great option due to its positive long term outlook thanks to its collection of quality brands. These brands include the likes of Bunnings, Kmart, Target, ecommerce company Catch Group, and a collection of industrial businesses. 

In addition to this, the company is sitting on a sizeable cash balance and looks very likely to put it to work with value accretive acquisitions in the near term. If these potential acquisitions are a success, it could give its growth an additional boost. I estimate that the company will be paying its shareholders a dividend of approximately $1.46 per share in FY 2021. Based on the current Wesfarmers share price, this equates to a fully franked 3.15% dividend yield.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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