ASX blue-chip shares are capable of providing significant dividend yields to investors through a mixture of rewarding dividend payout ratios and reasonable valuations.
Large ASX businesses typically aren't expected to grow earnings a lot, so they usually trade on lower price/earnings (P/E) ratio than something like a high-flying ASX growth share like Pro Medicus Ltd (ASX: PME) or TechnologyOne Ltd (ASX: TNE). Those two businesses are regularly increasing payouts, but the high P/E ratio turns into a low dividend yield.
I expect both of the below ASX blue-chip shares to increase their payouts in FY27, while providing an excellent dividend yield.
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Coles Group Ltd (ASX: COL)
I think Coles has delivered a classic blue-chip dividend performance since it split from Wesfarmers Ltd (ASX: WES) several years ago. Coles has hiked its annual dividend every year since then.
Coles is one of the leading supermarket businesses in Australia, which has benefited from the population growth and inflation this decade. Its huge, advanced distribution warehouses are helping with stock flow, availability and efficiencies.
The business has also worked hard at improving the customer offering with an improving online shopping experience and private brand products.
FY26 was a great performance by the business, with supermarket revenue growing 3.7% to $41.5 billion, supermarket online sales increasing 26.4%, group total revenue lifting 2.8% to $45.6 billion, operating profit (EBIT) rising 9.9% to $2.3 billion and underlying net profit increasing 13.7% to $1.26 billion.
With a growing supermarket network, the company can continue to increase its scale benefits and deliver rising sales. During FY26, its total supermarket count grew from 860 in June 2025 to 870 in June 2026.
The business grew its annual dividend per share by 13% to 78 cents per share, generally matching the growth of underlying net profit.
According to the projection on Commsec, Coles could pay an annual dividend per share of 83.5 cents. That's a dividend yield of 4.9%, including franking credits, at the time of writing.
Centuria Industrial REIT (ASX: CIP)
The other ASX blue-chip share I want to highlight is a leading real estate investment trust (REIT) that specialises in industrial property across Australian cities. Many of its tenants are blue-chip companies themselves.
Industrial space is in high demand for a number of reasons, including growing e-commerce adoption, data centres, refrigerated space (for food and medicine), the onshoring of supply chains and the general growth of city populations.
The low vacancy rate of industrial warehouses in city locations helps push the rental value of the real estate higher, which is a strong tailwind for rental profits. In FY26, the business reported like-for-like net operating income (NOI) growth of 5.2% and funds from operations (FFO) – rental earnings – growth of 4% per unit.
With the portfolio still reportedly under-rented by 17%, there is significant rental growth potential as existing rental contracts finish and come up for renewal.
In FY27, the REIT expects to report FFO growth of between 3.3% and 5.5%, to a range of 18.8 cents per unit and 19.2 cents per unit. That should fund a guided distribution of 17.3 cents per unit (up 3% year-over-year), which is a forward dividend yield of 6.2% at the time of writing.
