2 high-dividend shares to buy today for early retirement

These blue chip dividend shares could help you retire early…

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ASX dividend shares can be a great tool to help you reach an early retirement.

That's because you could speed the process up by investing in shares that pay a high dividend yield.

For example, if you invested a theoretical $1 million into a share that pays a 1% dividend yield, you would generate $10,000 of passive income over 12 months.

However, by investing in a dividend share that offers a yield of 4% or more, investors would receive $40,000 in dividends each year.

So, which ASX dividend shares could help you retire earlier?

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.

Image source: Getty Images

Telstra Corporation Ltd (ASX: TLS)

Income investors may want to consider buying this telco giant. That's the view of analysts at Morgans, which like the company due to its successful turnaround via the T22 strategy.

In addition, the broker highlights Telstra's ongoing restructure as a reason to buy. Its analysts believe the market is undervaluing some of Telstra's assets and expect the restructure to unlock value for shareholders.

In respect to dividends, the broker is expecting Telstra to continue to pay fully franked 16.5 cents per share dividends in both FY 2023 and FY 2024. Based on the current Telstra share price of $4.10, this equates to yields of 4%.

Morgans has an add rating and a $4.60 price target on the company's shares.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that has been tipped as a buy is banking giant Westpac.

Thanks to rising interest rates and the bank's major cost-cutting plans, it has been tipped to generate solid earnings growth in the coming years.

This is expected to underpin some big dividends for investors, according to analysts at Goldman Sachs.

Its analysts forecast a fully franked dividend per share of 148.4 cents in FY 2023 and 160 cents in FY 2024. Based on the current Westpac share price of $23.93, this will mean yields of 6.2% and 6.7%, respectively.

Goldman currently has a conviction buy rating and a $27.60 price target on the bank's shares.

Motley Fool contributor James Mickleboro has positions in Westpac Banking. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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