Insights

2 high yield ASX blue chip dividend shares to buy next week

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

man placing business card in pocket that says dividends signifying asx dividend shares

If you’re looking for a way to beat low interest rates, then the ASX dividend shares listed below could be worth considering.

I believe both dividend shares could be great options for income investors due to their generous yields and strong businesses. Here’s why I would buy them:

BHP Group Ltd (ASX: BHP)

If you don’t have exposure to the resources sector, then you might want to get it with an investment in BHP. I think BHP is the best option in the sector due to its diverse, world class, and low cost operations. The mining giant also has a number of growth opportunities, particularly in oil, that I believe could create value for shareholders in the coming years.

In the meantime, BHP looks well-positioned to deliver very strong free cash flows again in FY 2021 thanks to favourable iron ore and copper prices. The good news is that given the strength of its balance sheet, I expect the majority of its cash flow to be returned to shareholders. Based on the latest BHP share price, I estimate that it offers investors a fully franked forward ~4.5% yield.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to consider buying is this beaten down telco giant. While the sizeable decline in the Telstra share price this year is disappointing for shareholders, I think it is a buying opportunity for non-shareholders. Especially if the company shifts its dividend policy to a free cash flow-based one and maintains its dividend. 

In addition to this, after several years of profit declines, I believe a return to growth is on the horizon in the next couple of years. This is due to its T22 strategy, the easing NBN headwinds, and 5G internet. I expect the latter to be a big boost to mobile revenues once there is an iPhone that supports it. At present I still expect the company to pay a 16 cents per share dividend in FY 2021. Based on this and the current Telstra share price, it offers investors a fully franked 5.6% dividend yield.

These stocks could rocket in a Post-COVID world (FREE STOCK REPORT)

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 2 high yield ASX blue chip dividend shares to buy next week appeared first on 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!