2 ASX blue-chip shares offering big dividend yields

These large businesses have a lot of positives.

ASX blue-chip shares can be some of the most consistent and reliable investments on the ASX. There are some names with very pleasing dividend yields.

Businesses that lead in what they do can be excellent stocks to own because of their strong market positions, enviable profit margins, and ability to retain earnings.

Let's run through two top ASX blue-chip share contenders for passive income.

Male hands holding Australian dollar banknotes, symbolising dividends.

Image source: Getty Images

Telstra Group Ltd (ASX: TLS)

Telstra is Australia's leading telecommunications company that continues to cement its position in the country.

Its mobile infrastructure and mobile division are key for the company's success. In FY26, it added 274,000 mobile handheld users (or 1.9% growth), including 39,000 retail users and 235,000 wholesale users.

Mobile average revenue per user (ARPU) grew by 3.7% year-over-year to $45.33. It saw ARPU growth of 3.8% for postpaid handheld, 7.2% growth for prepaid handheld and 8.8% growth for wholesale.

Telstra continues to invest in its network. In FY26 alone, it upgraded nearly 1,200 mobile sites and built more than 150 new mobile sites.

It's also investing in its fibre network, with more than 8,500km of fibre deployed in its 'aura network'. The expected strategic investment has been increased to around $1.8 billion between FY23 and FY28. It's expected to deliver a mid-teens internal rate of return (IRR) with a nine-year cash payback.

Telstra reported in FY26 that cash earnings per share (EPS) grew by 13.8% to 25.5 cents, funding a 10.5% rise in the annual dividend per share to 21 cents.

The projection on Commsec suggests the business could pay an annual dividend per share of 22 cents in FY27, 4.75% more than FY26. That would be a FY27 grossed-up dividend yield of 6.4%, including franking credits, at the time of writing.

WAM Leaders Ltd (ASX: WLE)

Listed investment company (LIC) WAM Leaders is the other ASX blue-chip share I want to highlight. A LIC's job is to invest in other shares on behalf of shareholders.

It aims to actively invest in large, high-quality Australian companies.

At the end of August, its five biggest holdings, compared to the overall ASX 200 index, were Stockland Corporation Ltd (ASX: SGP), Rio Tinto Ltd (ASX: RIO), James Hardie Industries plc (ASX: JHX), Mirvac Group (ASX: MGR) and South32 Ltd (ASX: S32). This shows the types of ASX shares the WAM Leaders team want to invest in.

By generating investment returns, WAM Leaders can use profits to pay large, growing dividends to shareholders. It can offer investors both diversification and attractive dividends.

WAM Leaders has increased its annual dividend per share each year since it started paying dividends in FY17, so it has essentially reached a decade of continuous dividend growth, which is a great record.

The investment team have produced an average return of 12.2% since inception in May 2026, before fees, expenses and taxes, outperforming the S&P/ASX 200 Accumulation Index (ASX: XJOA) by an average of almost 3% per year.

In FY26, the ASX blue-chip share paid an annual dividend of 9.6 cents per share. That translates into a grossed-up dividend yield of 10.7%, including franking credits, at the time of writing.

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 positions in and has recommended Telstra 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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