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2 ASX blue chip shares I’d buy for dividend income

I love good ASX blue chip shares because of their market strength and their ability to make resilient profits, even in the face of an economic downturn.

Plenty of investors may already own the big banks or big miners, so I’m going to talk about two other large ASX shares that could offer even more resilient income.

Telstra Group Ltd (ASX: TLS)

We all use the internet, and Telstra is one of the key businesses providing a gateway to entertainment, education, work, communication, banking, shopping, connecting with government services and so on.

I think the amount of devices in Australia connected to the internet is only going to increase from here, which is a very positive tailwind for the company’s subscription numbers and future profit-making.

The ASX blue-chip share is hoping to keep growing its dividend and that’s exactly what is happening at the moment. Its 2024 financial year interim dividend was hiked by 5.9%, taking the annualised dividend yield to 4.8%, or 6.9% including the franking credits.

I believe the business can keep growing its profit and dividend in the next few years, with its improving 5G network. The number of people in Australia continues to grow, which helps increase the potential demand for Telstra.

Coles Group Ltd (ASX: COL)

We all need to eat food, so a supermarket business could be a very useful investment for people hoping for quite dependable earnings and a resilient dividend.

The inflation situation has made it a tricky operating environment for Coles, but conditions seem to be improving and Coles’ trading update for the first few weeks of the 2024 calendar year was promising – it grew sales faster than Woolworths Group Ltd (ASX: WOW).

The ASX blue-chip share hasn’t been listed on the ASX for that long, but it has created a track record of regularly growing its dividend payment. It’s not clear that there will be dividend growth in FY24, but the current yield translates into a dividend yield of 4.1%, or 5.8% with the franking credits.

The business is working on a number of initiatives including to be more sustainable and also to have more a more automated logistics network, which can help efficiencies and margins. This could help grow the Coles dividend in future years.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

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Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
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