2 blue chip ASX 200 dividend shares named as buys

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

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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:

Businessman cheering at desk with arms in the air

Image source: Getty Images

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.

More on Dividend Investing

A little boy in flying goggles and wings rides high on his mum's back with blue skies above.
Opinions

Why I think now is a great time to buy Qantas shares for long-term passive income

Qantas shares are now trading on a fully franked dividend yield of 5.5%.

Read more »

Woman smiling with her hands behind her back on her couch, symbolising passive income.
Dividend Investing

Don't want to rely on your wage? Build a second income with these ASX shares

Dividend payments can supplement a wage, here are two top contenders for goal.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Retirees, check out this new $330m listed investment company which aims to pay monthly fully franked dividends

If you're looking for income, this might be just the thing.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Dividend Investing

2 ASX dividend stocks Morgans rates as buys

Let's see what the broker is bullish on this month.

Read more »

Happy young woman saving money in a piggy bank.
Dividend Investing

Here's how much I'd need to invest in BHP shares to generate a $100 monthly income

BHP is one of the ASX’s top dividend payers and could be a good option for income investors.

Read more »

Dividend Investing

These buy-rated ASX dividend shares offer 7% to 8% yields

Morgans is expecting some big dividend yields from these shares.

Read more »

Woman in bed rolls over to hit clock
Dividend Investing

14 ASX shares about to go ex-dividend

Stocks going ex-dividend include Flight Centre, Perenti, NRW Holdings, and Service Stream.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

How many Santos shares do I need to buy for $10,000 a year in passive income?

Santos shares have delivered two yearly dividend payouts since 2019.

Read more »