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Telstra vs ANZ shares: Which ASX blue chip is better for a 60 year old investor?
Choosing between two blue-chip giants like Telstra Group Ltd (ASX: TLS) and ANZ Group Holdings Ltd (ASX: ANZ) isn't always straightforward, especially if you're approaching or in retirement and eyeing stable returns, steady dividends, and a healthy dose of peace of mind. These two stalwarts are popular with income-focused investors, but each brings a different flavour to the table. Let's dive into how they compare across dividends, momentum, valuation, and reliability.
The case for Telstra
Telstra is Australia's largest and most established telecommunications provider, offering fixed line, mobile, data, and internet services to homes and businesses. After a significant restructuring in 2022, the business now sits atop four major subsidiaries, spreading its operations from traditional telco to digital infrastructure and international services.
Digging into the numbers, Telstra boasts a market cap of $52.13 billion, putting it firmly in blue chip territory. It's currently trading on a price-to-earnings (P/E) ratio of 23.32—a little higher than the bank, which may reflect its lower earnings growth but more defensive business model. The telco's dividend yield sits at a healthy 4.53%, and its most recent dividend per share is $0.21, with franking at a consistently high 90%+ on regular payouts—excellent for retirees chasing tax-effective income.
Stability is another tick in Telstra's favour. Telcos are often viewed as defensive given the essential nature of their services, and with over 11 billion shares on issue, Telstra's scale and entrenched market position add reassurance.
The case for ANZ
ANZ is one of Australia's "big four" banks, a mainstay in the local financial landscape for decades. Through its extensive branch network and digital presence, it provides everyday banking, lending, and wealth services to millions of Australians and customers across nearly 30 countries.
Looking at the scorecard, ANZ's market cap dwarfs Telstra's at $115.51 billion, reflecting its broader role in both the domestic and global economy. Its P/E ratio of 19.46 is lower than Telstra's, indicating (at least for now) that the bank's earnings are stronger relative to its share price. The current dividend yield is 4.32%—just behind Telstra, but still appealing for income-seekers. Dividend per share stands higher at $1.66, though franked at 75%—somewhat less appealing than Telstra's fully franked payouts for those in retirement looking for maximum after-tax yield.
Another standout is ANZ's recent price momentum and earnings per share (EPS) figure, an impressive 1.973. That suggests robust profitability, but it's worth noting that banks can be more cyclical and sensitive to economic shifts than telcos.
Valuation comparison
Here's how the key metrics stack up:
| Metric | Telstra | ANZ |
|---|---|---|
| Market Cap | $52.13bn | $115.51bn |
| P/E Ratio | 23.32 | 19.46 |
| Earnings per Share | 0.199 | 1.973 |
| Dividend Yield | 4.53% | 4.32% |
| Dividend per Share | $0.21 | $1.66 |
| Franking | 90.5% | 75% |
| Year To Date Return | -0.4% | 7.9% |
Note: The P/E and EPS figures for Telstra suggest a higher valuation for each dollar of earnings compared to ANZ. Both companies offer similar headline dividend yields, but Telstra's are more fully franked, which could make a difference for retirees drawing pension income.
Recent share price momentum
Comparing recent share price performance up to 14 October 2026:
- As of 14 Oct 2026, Telstra closed at $4.70. Over the previous fortnight, movement has been mixed but broadly flat, with the share price nudging up by 1.3% on the final day but little net change over the full stretch. Its year to date (YTD) return is -0.4%.
- As of 14 Oct 2026, ANZ closed at $38.30. Recent weeks saw a modest uptick, and its YTD return stands at a stronger 7.9%—indicating better overall momentum this year.
Which is the better buy?
For a 60 year old investor seeking comfort, dividends, and relative stability, my pick would be Telstra Group. Here's why: Despite offering a similar yield to ANZ, Telstra's dividends are more fully franked (90.5% vs 75%). That can make a real difference come tax time. The company's defensive sector and history of steady payouts are reassuring, especially during times when markets get wobbly.
Yes, ANZ has outperformed on recent price momentum and trades on a keener P/E ratio, but as a bank it's also more exposed to economic cycles and policy changes—which can swing dividends and earnings. Telstra, while a little more expensive per dollar of earnings, offers the kind of reliable, tax-efficient income and stability I think most retirees or soon-to-be-retirees are after.
Of course, no ASX blue chip is truly "set and forget," but in a head-to-head choice for a retiree's income portfolio, I'd lean toward Telstra's blend of yield, franked income, and resilience as the safer option for that stage of life.
