With the market swinging between optimism and uncertainty, income investors are again turning to dependable blue chip ASX dividend shares for stability. And while many defensive names have already been bid up this year, several high-quality dividend payers are still trading at levels that brokers consider attractive.
If you are building or topping up an income portfolio, analysts have highlighted two standout blue chips that are offering solid dividend yields and resilient earnings.
Here's what they are recommending to clients this month:
BHP Group Ltd (ASX: BHP)
The first blue chip ASX dividend share that could be a buy is BHP.
Australia's largest miner remains one of the most reliable dividend machines on the ASX. BHP continues to generate vast amounts of free cash flow from its tier-one iron ore, copper, and metallurgical coal operations, which are among the lowest-cost assets anywhere in the world.
Even though commodity markets can be volatile, BHP's disciplined balance sheet, diversified portfolio, and cost efficiency give it the ability to sustain shareholder returns across the cycle. The company has proven repeatedly over the past decade that it can continue paying attractive fully franked dividends even when prices pull back.
Morgan Stanley is bullish on the Big Australian and has an overweight rating and $48.00 price target on its shares.
As for dividends, the broker is forecasting fully franked dividends of approximately $1.90 per share in FY 2026 and $1.70 per share in FY 2027. Based on its current share price of $41.72, this equates to dividend yields of 4.6% and 4.1%, respectively.
Coles Group Ltd (ASX: COL)
Supermarket operator Coles remains a firm favourite among blue chip investors, and for good reason. Its focus on essential, repeat-purchase categories means consistent revenue, predictable earnings, and dependable dividends, even when economic conditions soften.
Coles continues to invest in automation, supply chain improvements, and private label expansion to boost margins and support long-term profitability. In a market where stability is becoming increasingly valuable, its defensive qualities certainly do stand out.
Morgan Stanley is also feeling bullish on this one. It recently put an overweight rating and $26.60 price target on its shares.
With respect to income, the broker is expecting fully franked dividends of 83 cents per share in FY 2026 and then 90 cents per share in FY 2027. Based on its current share price of $22.33, this represents dividend yields of 3.7% and 4%, respectively.
