2 ASX blue-chip shares offering big dividend yields

These stocks offer both earnings resilience and large passive income.

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Key points
  • Commonwealth Bank and BHP's higher valuations have reduced their yields; consider smaller businesses like Sonic Healthcare and Metcash for rewarding dividends.
  • With operations in several countries, Sonic Healthcare reported strong revenue growth in FY25 and expects significant earnings and payout growth in the coming year.
  • Metcash's resilient food, liquor, and hardware divisions help it maintain a strong dividend yield, with promising sales growth contributing to future dividend prospects.

When you think of ASX blue-chip shares for passive income, names from the ASX bank share and ASX mining share sectors may come to mind. But, there are other stocks that can also provide a very rewarding dividend yield.

Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are highly followed businesses by investors and their price/earnings (P/E) ratios are higher than they used to be, reducing the dividend yield on offer.

The largest businesses also have less growth potential than they used to because they're already huge. Smaller businesses with commendable market positions could be preferable choices for dividends. Let's take a look at two compelling ideas.

Person holding a blue chip.

Image source: Getty Images

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is one of the largest pathology businesses in Australia. It also has a good market presence in countries like Germany, the UK and Switzerland. Plus, it has a small position in markets like New Zealand and Belgium.

People don't choose when to get sick or when they need medical attention. People also place a high importance level on their health, so I'd say this business has defensive earnings.

In FY25, the business delivered 8% revenue growth to $9.6 billion, 7% net profit growth to $514 million and 21% growth of operating cash flow to $1.3 billion. This growth helped the business increase its annual payout per share to $1.07, which translates into a trailing dividend yield of 4.9%, excluding franking credits.  

The ASX blue-chip share is expecting to grow its payout in the coming years with future earnings growth.

Sonic Healthcare suggests its FY26 operating profit (EBITDA) could grow up to 13% year-over-year with "strong" earnings per share (EPS) growth (of up to 19%). Management point to organic growth, Swiss and German synergies, acquisitions and US initiatives as drivers of this guidance.

Metcash Ltd (ASX: MTS)

Metcash is a diversified business thanks its three different divisions – food, liquor and hardware.

I'd describe the food and liquor divisions as resilient, as it distributes food and liquor to hundreds of independent retailers around the country including IGA and other supermarkets, as well as Cellarbrations, IGA Liquor, The Bottle-O, Porters, Thirsty Camel and others.

The food division also has a business called Superior which services restaurants, cafes, canteens, caterers, schools, universities, healthcare and aged care facilities.

The ASX blue-chip share owns a number of businesses in its hardware segment including Mitre 10, Home Hardware, Total Tools, Bianco Construction Supplies and Alpine Truss.

I like how defensive the food and drink side of the business is, while the hardware segment could see a bounce back from tough operating conditions following RBA rate cuts and a resurgence in house prices. That bodes well for the growth of the dividend yield in the future, in my view.

The recent trading update was promising. In the 18 weeks to 31 August 2025, total sales excluding tobacco increased 5.1% (or 1.1% including tobacco). Total food sales were up 8.6% excluding tobacco sales, total liquor sales were up 1.5% and Total Tools and Hardware Group sales were up 1.8%.

The business pays around 70% of its underlying net profit as a dividend, which led to a total dividend per share of 18 cents in FY25. That translates into a trailing grossed-up dividend yield of 6.75%, including franking credits.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. 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 recommended BHP Group and Sonic Healthcare. 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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