ASX blue-chip shares can be a great source of dividend income thanks to their stability and regular profit generation.
The two businesses I'm going to highlight have already provided investors with plenty of good passive income over the years.
In my view, the two ideas below are compelling to me.
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Argo Investments Ltd (ASX: ARG)
The first ASX blue-chip share is one of the oldest listed investment companies (LICs) – it has been operating since 1946. The job of a LIC is to invest in other shares on behalf shareholders.
Argo focuses on investing in ASX blue-chip shares, so it can give us exposure to a portfolio of names and make investment decisions about which stocks to own.
At the end of August 2026, its biggest positions were BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG), Rio Tinto Ltd (ASX: RIO), Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC) and CSL Ltd (ASX: CSL).
Last month, the board of directors declared a fully franked final dividend of 20 cents per share. Together with the interim dividend of 18.5 cents per share, the full-year dividend was hiked to a record high of 38.5 cents per share.
In FY27, it is changing to pay quarterly dividends and the board intends to declare a quarterly payout of 10 cents per share for the first four quarterly dividends. That'd be a year-over-year increase of 3.9% – likely more than inflation.
The expected FY27 grossed-up dividend yield is 6.2%, including franking credits, at the time of writing.
Scentre Group (ASX: SCG)
Scentre is one of Australia's largest real estate investment trusts (REITs). It owns Westfield shopping centres across Australia and New Zealand.
The ASX blue-chip share can pay distributions from its strong net rental profits.
The FY26 half-year result was a strong example of the business's performance, despite tougher operating conditions.
Funds from operations (FFO) – essentially the net rental profit – grew 4.4% to $612 million or 11.73 cents per security. This funded a 4.9% increase in the distribution to 9.215 cents per security.
Despite the rise of e-commerce, Scentre Group's annual customer visits increased by 3.3% to 552 million. For the 12 months to 30 June 2026, total sales grew by $1 billion to a record $30.3 billion, up 4.2%. Specialty sales grew by 5.4%.
For the month of July, total business partner sales grew 2.7%, and specialty sales were 3.6% higher.
Rent escalations increased by 5.5% in the six months to 30 June 2026, while the ASX blue-chip share completed 1,401 leasing deals, achieving average releasing spreads of 3.7%. These are useful tailwinds for future rental profit growth.
It's also looking to use some of its excess land to build thousands of dwellings and these plans are progressing.
The business recently upgraded its distribution guidance for 2026 to growth of 4.25% to 18.47 cents per security. That translates into a forward distribution yield of 5.4%.
