ASX blue-chip shares can be appealing sources of dividend income. However, just because a company pays a dividend doesn't mean it's automatically a good option for passive income.
When I look at the biggest companies on the ASX, the top of the list is dominated by ASX bank shares and ASX mining shares. These are big parts of the Australian economy, but they're not my perfect picks for dividends.
Ideally, I'd like an ASX dividend share to be able to provide consistent and growing dividend payments, even in a (small) downturn. It'd also be ideal if that business has a positive outlook for growing earnings in the long term.
So, with that in mind, the below three are the ASX blue-chip shares I'd buy of Australia's biggest companies.
Wesfarmers Ltd (ASX: WES)
Wesfarmers is the parent company of a number of Australia's strongest retail businesses, including Kmart, Bunnings, Officeworks, Priceline, and more.
In the last few years, Wesfarmers' high-quality retailers have shown their capability to continue growing sales. The value it provides customers with Kmart and Bunnings has helped it grow its market share during this period. I like the diversification of its operations, which includes the chemicals, energy and fertiliser division (WesCEF). It also seems to have the freedom to expand into other areas.
I believe there's a high chance the company can grow its dividend in each of the next few financial years. According to Commsec, in FY26, it's projected to pay a grossed-up dividend yield of 4.7%, including franking credits.
Coles Group Ltd (ASX: COL)
Coles is one of the largest supermarket companies in Australia, with a large national network. The last few years have been an eventful period for Coles, but I think the outlook seems like it could be more 'normal' for the ASX blue-chip share.
With Australia's population growing over time, there are more consumers and customers for Coles. If there's any ongoing inflation of supermarket prices (even a low amount), then this could help the supermarket business grow sales and profit at a faster pace. We all need to eat, so I view Coles' underlying earnings as very defensive.
According to Commsec, in FY26, the company is projected to pay a grossed-up dividend yield of 5.6%, including franking credits.
Telstra Group Ltd (ASX: TLS)
Telstra is Australia's biggest ASX telco share. It has the most mobile subscribers, the largest mobile network, and supposedly the best spectrum assets.
The company has been attracting hundreds of thousands of new users each year, which is boosting its revenue and profit margins. The ASX blue-chip share's profit margins benefit when it adds users because it spreads the network costs across more users. Nearly every household and business has an internet connection, making it an essential service. Therefore, I believe that Telstra's mobile and broadband earnings are quite defensive.
According to Commsec, in FY26, the company is projected to pay a grossed-up dividend yield of 6.75%, including franking credits.
