Investors that are interested in boosting their income portfolio with some blue chip dividend shares might want to take a look at the ones listed below.
Here's what you need to know about these top blue chips:
Fortescue Metals Group Limited (ASX: FMG)
The first blue chip ASX dividend share to look at is Fortescue. Through its operations across the Pilbara region in Western Australia, Fortescue is one of the world's largest producers of iron ore. And with the spot iron ore price currently fetching US$216 a tonne, this certainly is a great time for Fortescue.
Especially when you consider that its C1 costs guidance for FY 2021 is US$13.50 to US$14.00 per wet metric tonne. And while its lower grade product won't command the full spot iron ore price, it will still be generating significant free cash flow on each tonne of production.
It is for this reason that analysts at Macquarie are expecting some big dividends in the near term. The broker is forecasting fully franked dividends of $3.45 per share in FY 2021 and then $2.45 per share in FY 2022. With the Fortescue share price currently fetching $22.92, this will mean massive dividend yields of 15% and 10.7%, respectively.
Macquarie has an outperform rating and $27.00 price target on the company's shares.
Suncorp Group Ltd (ASX: SUN)
Another ASX dividend share to look at is Suncorp. The banking and insurance giant has been performing very positively in FY 2021. This has been driven by Australia's strong economic recovery from the pandemic.
Analysts at Citi are expecting this improved performance to lead to generous dividends in the near term. In fact, the broker suspects a special dividend could be paid in FY 2021.
Citi is forecasting dividends of 61 cents per share in FY 2021 and then 58 cents per share in FY 2022. So, with the Suncorp share price currently trading at $11.01, this implies fully franked yields of 5.5% and 5.2%, respectively, over the next two years.
Citi currently has a buy rating and $11.80 price target on its shares.
