2 blue chip ASX dividend shares with +4% yields

These dividend shares have generous fully franked yields…

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If you’re interested in boosting your income with dividend shares, then you might want to look at the ones listed below.

Not only are they rated as buys, they are tipped to provide yields of greater than 4%. They are as follows:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The first ASX dividend share to look at is ANZ. Thanks to favourable trading conditions, a booming housing market, cost reductions, and the relaxation of responsible lending rules, ANZ looks well-placed for growth in the coming years.

This certainly has been the case so far in FY 2021. During the first half of FY 2021, the company reported a statutory profit after tax of $2,943 million and cash earnings from continuing operations of $2,990 million. This was up 45% and 28%, respectively, on the second half of FY 2020.

Morgans is a big fan of ANZ. Its analysts currently have an add rating and $34.50 price target on its shares. They appear increasingly confident that ANZ will be able to deliver on its $8 billion cost base target.

The broker is also forecasting fully franked dividends of 145 cents per share in FY 2021 and 163 cents per share in FY 2022. Based on the latest ANZ share price of $28.32, this represents yields of 5.1% and 5.7%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share to consider is Telstra. After years upon years of struggles, the tide is changing and growth could be on the horizon. This is thanks to its cost cutting, rational competition, and its leadership position with 5G. The latter is expected to support growth in the key postpaid mobile business.

In addition to this, the company is aiming to unlock value through its corporate restructure and potential asset monetisation. In fact, Telstra has just announced an agreement to sell 50% of its InfraCo Towers business for $2.8 billion, with ~50% of net proceeds to be returned to shareholders.

Goldman Sachs is a fan of the telco giant and currently has a buy rating and $4.20 price target on its shares.

The broker is also forecasting fully franked annual dividends of 16 cents per share through to FY 2023, before an increase to 18 cents per share in FY 2024. Based on the latest Telstra share price of $3.79, this will mean attractive yields of approximately 4.2% over the coming years.

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*Returns as of January 12th 2022

Motley Fool contributor James Mickleboro has no position in any of the stocks 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 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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