2 blue-chip ASX shares that offer 4% dividend yields

It's hard to find yields this high right now.

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Key points

  • Despite the rising ASX 200, a few ASX dividend stocks still offer yields above 4%, notably BHP Group and Bendigo and Adelaide Bank.
  • BHP Group stands out with a 4.07% yield and is valued for its low-cost iron ore and copper production, though its dividends fluctuate with commodity prices.
  • Bendigo and Adelaide Bank, outside the big four banks, maintains a reliable yield of 4.93% with full franking credits, appealing to income investors.

As ASX income investors would know, it's become harder and harder to find dividend stocks that are trading on yields above 4% at the moment, even amongst the blue chips of the ASX.

With the S&P/ASX 200 Index (ASX: XJO) up around 26% over the past two years, many reliable dividend payers have risen so much in value that their yields have dropped considerably. A case in point is Commonwealth Bank of Australia (ASX: CBA), which today is on a very unbank-like 2.75%.

But there are still some heavy hitters that remain on the ASX boards when it comes to passive income. So today, let's check out two ASX blue chip shares that still trade on yields of over 4% right now. The payouts that these blue chips offer have historically come with full franking credits attached too. As every income investor knows, this boosts your potential returns even further.

2 ASX blue chip shares that sport 4% dividend yields right now

BHP Group Ltd (ASX: BHP)

First up, we have mining giant BHP. The 'Big Australian' is currently sitting on a dividend yield of 4.07% at the time of writing, a yield which has historically come with full franking credits attached too.

Resources stocks like BHP tend to be more unpredictable thanks to their profitability's dependence on commodity prices. However, BHP is one of the lowest-cost producers of iron ore and copper in the world. As such, this ASX blue chip share usually delivers some of the most reliable income you can get from the mining sector.

Sure, this income can, and does, bounce around quite significantly from year to year. But it is still a favourite of dividend investors around the country, and is often found in your typical income portfolio.

Bendigo and Adelaide Bank Ltd (ASX: BEN)

The ASX bank stocks that don't enjoy membership of that exclusive 'big four' club are often shunned by investors. That's understandable. Smaller banks like Bendigo don't enjoy the same reputation or scale that their larger cousins like Commonwealth Bank do. But they are still ASX blue chip shares and heavyweights when it comes to reliable dividend income.

Over the past 12 months, Bendigo and Adelaide Bank shares have paid out 66 cents per share in dividends, which also came with full franking credits attached. That gives this ASX blue chip share a trailing dividend yield of 4.93% at the current share price.

Motley Fool contributor Sebastian Bowen 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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended BHP Group. 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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