Are you on the lookout for blue chip ASX dividend shares to buy with $20,000?
If you are, then you are in luck! That's because analysts have recently named a number of blue chips that they think are in the buy zone right now for income investors.
Here's what they are recommending to clients and what sort of dividend yields they are forecasting:
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BHP Group Ltd (ASX: BHP)
BHP could be a blue chip ASX 200 dividend share to buy. It has been one of the most reliable dividend payers over the last decade, delivering strong cash returns to investors thanks to its world-class portfolio of iron ore, copper, and metallurgical coal assets.
And while commodity prices can be volatile, BHP's low-cost operations and robust balance sheet give it the flexibility to continue rewarding shareholders even during softer cycles.
Morgans is positive on the miner and has an accumulate rating and $43.90 price target on its shares.
In respect to income, the broker is forecasting fully franked dividends of approximately $1.59 per share in FY 2025 and then $1.55 per share in FY 2026. Based on its current share price of $41.96, this would mean dividend yields of 3.8% and 3.7%, respectively.
Telstra Group Ltd (ASX: TLS)
A second blue chip ASX 200 dividend share to consider is Telstra. It is Australia's largest telco and a favourite among income investors.
With its mobile and network businesses benefiting from rising demand for connectivity and 5G services, the company is well-placed to grow its payouts. Especially given the recently announced Connected Future 30 strategy.
Macquarie is positive and has an outperform rating and $5.04 price target on Telstra's shares.
As for payouts, it is forecasting fully franked dividends of 20 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price, this would mean dividend yields of 4.1% and 4.3%, respectively.
Coles Group Ltd (ASX: COL)
Finally, supermarket giant Coles could be a blue chip ASX 200 dividend share to buy.
It is a popular option for income investors and it isn't hard to see why. Its focus on everyday essentials means robust cash flow and defensive earnings. These underpin dependable dividends even in periods of economic uncertainty.
Macquarie is also positive on Coles. It has an outperform rating and $24.10 price target on its shares.
As for income, it is forecasting fully franked dividends 67 cents per share in FY 2025 and then 78 cents per share in FY 2026. Based on its current share price of $21.06, this would mean dividend yields of 3.2% and 3.7%, respectively.
