2 more blue chip ASX dividend shares

These blue chips have generous dividend yields…

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asx blue chip shares represented by pile of blue casino chips in front of bar graph

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Although the Australian share market is at a record high, that doesn’t mean there aren’t any decent dividend yields out there.

Two blue chip ASX dividend shares that offer investors attractive yields are listed below. Here’s why analysts think they are in the buy zone for income investors at the current level:

Coles Group Ltd (ASX: COL)

The first blue chip ASX dividend share to consider is this supermarket giant. It could be a top option for investors due to its defensive qualities, strong market position, and solid long term growth prospects. The latter is being underpinned by its investments in its online business, distribution, and automation.

Last week analysts at Morgan Stanley responded to Coles’ strategy update by putting a buy rating and $19.00 price target on its shares.

The broker is also forecasting fully franked dividends of 57 cents per share in FY 2021 and then 59 cents per share in FY 2022. Based on the latest Coles share price of $16.36, this will mean yields of 3.5% and 3.6%, respectively, over the next two years.

Telstra Corporation Ltd (ASX: TLS)

Another blue chip ASX dividend share to consider is this telco giant. It could be a good option due to its improving outlook, attractive valuation, and generous yield. The former is being driven by the company’s successful T22 strategy, the easing NBN headwind, and its leadership position in the lucrative 5G internet market.

And although the Telstra share price has just hit a 52-week high, Goldman Sachs still sees a lot of value in it. A recent note reveals that its analysts have retained their buy rating and $4.00 price target on its shares.

Goldman is expecting Telstra to continue to pay fully franked dividends of 16 cents per share for the foreseeable future. Based on the latest Telstra share price of $3.57, this will mean yields of 4.5%.

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Returns As of 15th February 2021

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET and Telstra Corporation 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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