2 blue chip ASX dividend shares to buy

Here’s why Rio Tinto Limited (ASX:RIO) and this blue chip ASX dividend share could be the ones to buy this month…

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With interest rates unlikely to be improving any time soon, the share market looks set to remain the best place for income investors to earn an income for some time to come.

But which ASX dividend shares should you buy this month? Two blue chip ASX dividend shares that are rated as buys right now are listed below. Here’s what you need to know about them:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The big four banks have been very strong performers over the last six weeks. In fact, since the start of November, the ANZ share price has risen a mouth-watering 24%. While the majority of its gains may be gone now, the bank has still been tipped as one to buy by analysts at Citi.

Earlier this week the broker put a buy rating and $23.75 price target on its shares. Citi is also forecasting a 105 cents per share dividend in FY 2021 and a 140 cents per share dividend in FY 2022. Which, based on the latest ANZ share price, represents dividend yields of 4.5% and 6%, respectively, over the next couple of years.

Rio Tinto Limited (ASX: RIO)

Thanks to very favourable copper and iron ore prices, this mining giant appears perfectly positioned to deliver another strong result in FY 2021. And with its balance sheet looking robust, the majority of the free cash flow it generates looks set to be returned to shareholders in the form of buybacks and dividends.

One broker that is positive on Rio Tinto is Ord Minnett. This week the broker reiterated its buy rating and $150.00 price target on its shares. It expects a dividend of ~$6.31 per share in FY 2021 and then ~$7.27 per share in FY 2022. Based on the current Rio Tinto share price of $114.37, this will mean fully franked dividend yields of 5.5% and 6.35%, respectively.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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