2 blue chip ASX dividend shares to buy next week

Coles Group Ltd (ASX:COL) and this ASX blue chip share could be top options for income investors next week…
The post 2 blue chip ASX dividend shares to buy next week appeared first on The Motley Fool Australia. –

fingers walking up piles of coins towards bag of cash signifying asx dividend shares

As I mentioned here earlier, the interest rates on offer with term deposits have fallen to such low levels, you would have to invest millions into them to earn a sufficient income.

In light of this, the share market looks set to remain the place to earn a passive income for the foreseeable future.

But which shares should you buy? Here are two ASX dividend shares that are rated as buys:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

While trading conditions in the banking sector are likely to remain relatively tough in the near term, they are certainly improving now the worst of the pandemic appears to be behind us. In addition to this, the relaxing of responsible lending rules and the improving housing market look set to give the banks a boost in 2021.

Another positive is that APRA has just announced that it will be removing its dividend restrictions on the banks. This means they will be free to pay out however much of their profits that they see fit in 2021.

It was because of this that Morgans reiterated its add rating and lifted its price target on the company’s shares to $26.00 last week. Morgans is forecasting a $1.27 per share dividend in FY 2021 and a $1.50 per share dividend in FY 2022. Based on the current ANZ share price, this represents 5.4% and 6.4% dividend yields, respectively.

Coles Group Ltd (ASX: COL)

This leading supermarket operator has been growing at a solid rate in recent years thanks to a combination of same store sales growth, store expansion, and its defensive qualities. The latter has been particularly helpful during the pandemic, with Coles reporting strong sales growth despite the economic downturn.

Pleasingly, this strong form has continued in FY 2021 even as COVID headwinds ease. This appears to have put Coles in a position to deliver a strong full year result next year.

Analysts at Citi appear confident this will be the case. The broker recently retained its buy rating and lifted the price target on the Coles share price to $21.20. It is also forecasting a 63.5 cents per share fully franked dividend this year. This represents a fully franked 3.5% dividend yield.

These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

Click Here For Your Free Stock Report

Returns As of 6th October 2020

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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 next week appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!