2 blue chip ASX 200 dividend shares named as buys

These blue chip ASX 200 dividend shares could be in the buy zone…

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If you're looking to add some blue chip ASX 200 dividend shares to your portfolio, then the two listed below might be ones to consider.

Here's what you need to know about them:

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Coles Group Ltd (ASX: COL)

The first blue chip ASX 200 dividend share to consider buying is Coles. It is of course one of the big two supermarket operators. In addition to its 800+ supermarkets, the company has a network of over 900 liquor retail stores and over 700 Coles express stores.

Coles has been growing at a solid rate for decades and shows no signs of stopping any time soon. Particularly given its Refresh Strategy, which is aiming to leverage technology to cut costs and boost its online sales.

Part of this strategy has seen the company invest almost $1 billion in a couple of fully automated distribution centres. These centres will be the key to supply chain optimisation and are expected to be operational in 2023.

In the meantime, Goldman Sachs believes the company is well-placed to grow both its earnings and dividends. In respect to the latter, the broker has pencilled in dividends per share of 62 cents in FY 2021, 67 cents in FY 2022, and 73 cents in FY 2023.

Based on the latest Coles share price of $18.40, this will mean fully franked yields of 3.35%, 3.6%, and 4%, respectively.

Goldman has a buy rating and $19.40 price target on its shares.

Westpac Banking Corp (ASX: WBC)

Another blue chip ASX 200 dividend share to consider is banking giant Westpac.

Australia's oldest bank could be a top option for income investors due to its improved performance and its increasing positive outlook. The latter is being underpinned by favourable trading conditions and its very strong capital position.

Goldman Sachs is also a fan of Westpac. It currently has a buy rating and $29.03 price target on its shares.

Over the next three financial years, its analysts are forecasting fully franked dividends per share of $1.16, $1.23, and $1.32, respectively.

Based on the latest Westpac share price of $26.16, this will mean yields of 4.4%, 4.7%, and 5%.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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. 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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