Luckily in this low interest rate environment, there are a number of blue chip shares offering investors generous yields.
Three blue chips that are highly rated right now for income investors are listed below. Here’s what you need to know:
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
With the worst now seemingly behind the banks, investors have been piling into the sector again in recent months. The good news is that it may not be too late to invest and still generate a generous yield. According to a note out of Morgans, now that dividend restrictions have been removed, its analysts are forecasting a $1.27 per share dividend in FY 2021. This represents a fully franked 5.2% yield. Morgans has an add rating and $26.00 price target on its shares.
BHP Group Ltd (ASX: BHP)
Another blue chip that comes highly rated is BHP. Thanks to favourable commodity prices, particularly the sky high iron ore price, analysts at Macquarie are tipping the mining giant to generate significant free cash flow this year. The broker expects this to result in a fully franked ~$3.85 per share dividend in FY 2021. Which based on the current BHP share price, represents an 8.3% dividend yield. Macquarie has an outperform rating and $46.00 price target on its shares.
Telstra Corporation Ltd (ASX: TLS)
This telco giant has struggled for a number of years due to the NBN rollout but has been tipped to return to growth in the not so distant future. This is thanks to its T22 strategy and the arrival of 5G internet. In the meantime, analysts at UBS believe that Telstra will be able to maintain its 16 cents per share fully franked dividend for the foreseeable future. Based on the current Telstra share price, this equates to a 5.2% dividend yield. UBS has a buy rating and $3.70 price target on the company’s shares.
Where to invest $1,000 right now
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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 February 15th 2021
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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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