2 blue chip ASX dividend shares in the buy zone

Westpac Banking Corp聽(ASX:WBC) and this blue chip ASX dividend share could be top options for income investors right now…

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ASX expensive defensive shares man carrying large dollar sign on his back representing high P/E ratio or dividend

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Are you looking for some ASX dividend shares to add to your income portfolio?聽

Then you might want to take a look at the blue chip dividend shares listed below. Here鈥檚 what you need to know about them:

Wesfarmers Ltd聽(ASX: WES)

The first blue chip ASX dividend share to look at is Wesfarmers. It is the conglomerate behind a number of popular retail brands including Bunnings, Kmart, and Officeworks. It also owns a number of industrial businesses such as CSBP and Covalent Lithium.

Furthermore, it has a very strong balance sheet and the potential to add further value accretive acquisitions to its portfolio in the near future.

It was a strong performer during the first half of FY 2021. For the six months ended 31 December, Wesfarmers reported a 16.6% increase in revenue to $17,774 million and a 25.5% increase in net profit after tax to $1,414 million.

A key driver of this growth was its important Bunnings business. It reported a 24.4% increase in revenue to $9,054 million. This means the hardware giant contributes over half of its overall revenue.

One broker that was pleased with the result was Goldman Sachs. It has a buy rating and $59.70 price target, and is forecasting a fully franked FY 2021 dividend of $1.88 per share. Based on the latest Wesfarmers share price, this equates to a 3.7% yield.

Westpac Banking Corp(ASX: WBC)

Another blue chip ASX dividend share to buy could be Westpac. Like Wesfarmers, Westpac has been on form in FY 2021

Last month the banking giant released its聽first quarter update聽and revealed an impressive $1.97 billion first quarter cash profit. This was more than double the quarterly FY 2020 second half average cash earnings.

But perhaps the best part of the result was the bank reversing ~$500 million of COVID-19 related impairments. It made the move due to improving economic conditions and appeared to hint that more could be coming if conditions continue to improve.

Analysts at Morgans were pleased with the result and have put an add rating and $27.50 price target on its shares. In addition, the broker is forecasting a fully franked $1.32 per share dividend in FY 2021. Which, based on the current Westpac share price, represents a generous 5.4% dividend yield.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of Wesfarmers 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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