2 blue chip ASX dividend shares to buy

Westpac Banking Corp (ASX:WBC) and this blue chip ASX dividend share could be top options for income investors. Here’s why…
The post 2 blue chip ASX dividend shares to buy appeared first on The Motley Fool Australia. –

ASX shares Hand writing Time to Buy concept clock with blue marker on transparent wipe board.

If you’re wanting to add a few dividend shares to your portfolio, then you may want to check out the ones listed below.

Here’s why these ASX dividend shares come highly rated right now:

Wesfarmers Ltd (ASX: WES)

Wesfarmers could be a dividend share to buy next week. The conglomerate is of course the name behind several of Australia’s leading retailers and a collection of industrial businesses.

It has been a strong performer during the pandemic and this continued during the first half of FY 2021. For the six months ended 31 December, Wesfarmers reported a 16.6% increase in revenue to $17,774 million and a 25.5% increase in net profit after tax to $1,414 million.

Positively, with many of its businesses continuing to benefit from favourable tailwinds, the second half looks set to be equally strong.

One broker that sees value in its shares at the current level is Goldman Sachs. It recently put a buy rating and $59.70 price target on its shares. The broker is also forecasting a fully franked FY 2021 dividend of $1.88 per share. Based on the latest Wesfarmers share price, this equates to a 3.7% yield.

Westpac Banking Corp (ASX: WBC)

Another option for investors to consider is Westpac. With the worst of the pandemic now behind us and vaccines rolling out, conditions are looking a lot more favourable for the banks.

Another positive is the booming housing market, which is being supported by low interest rates and the relaxation of responsible lending rules. This is expected to underpin strong demand for mortgages.

Analysts at Morgans are becoming increasingly positive on the bank. Last month the broker named Westpac as its favourite of the big four and put an add rating and $27.50 price target on its shares.

The broker is forecasting a $1.32 per share fully franked dividend in FY 2021. Based on the latest Westpac share price, this represents a generous 5.4% dividend yield.

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Returns As of 15th February 2021

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 blue chip ASX dividend shares to buy appeared first on The Motley Fool Australia.

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