Are you looking for dividend shares to buy? If you are, then you may want to look at the two blue chips listed below.
Here's why these dividend shares could be in the buy zone:
BHP Group Ltd (ASX: BHP)
The first ASX dividend share to look at is BHP. This mining giant's shares have come under significant pressure since the middle of August. This has of course been driven by a sharp pullback in the iron ore price.
While the is disappointing for shareholders, it could be a buying opportunity for non-shareholders. This is because the iron ore price is still at a level that generates significant free cash flow for BHP. In addition, the prices of other commodities have been rising, offsetting some of iron ore's decline.
So much so, the team at Morgans still believe BHP will be able to pay a very generous dividend again in FY 2022. Its analysts are forecasting a dividend of $3.95 per share this financial year. Based on the current BHP share price of $37.93, this will mean a yield of 10.4% for investors.
Morgans has an add rating and $46.05 price target on the miner's shares.
Coles Group Ltd (ASX: COL)
Another blue chip ASX dividend share that Morgans is positive on is Coles.
It likes the supermarket giant due to its strong market position, attractive valuation compared to rival Woolworths Group Ltd (ASX: WOW), and its attractive dividend yield.
In respect to the latter, the broker is forecasting a fully franked 61 cents per share dividend in FY 2022. Based on the current Coles share price of $17.83, this will mean a yield of 3.4% for investors.
Morgans has an add rating and $19.80 price target on its shares.
