ASX blue-chip shares are some of the best contenders for providing reliable passive income. Resilient products allow for consistent dividend payments and good dividend yields.
Businesses with a strong market share, cost advantages, larger margins, and a good outlook can be very appealing investments. Rising profits can lead to capital growth over time and, typically, dividend growth too.
With their current dividend yields and appealing prospects for further growth, I’m optimistic about what the following two businesses can accomplish.
Medibank Private Ltd (ASX: MPL)
Medibank is the largest private health insurer in Australia and it’s steadily growing its exposure to other healthcare businesses.
The ASX blue-chip share is delivering exactly the growth I’d want to see if I were a shareholder.
In the FY26 half-year result, the business reported that it added 38,300 net resident policyholders and 1,500 net non-resident policy units. These are key metrics which maintain/grow its market share, add to scale advantages and hopefully deliver rising profit margins over time.
HY26 revenue climbed by 5.5%, group operating profit increased by 6% to $360.1 million and the interim dividend per share was increased by 6.4% to 8.3 cents per share.
I view healthcare as a defensive sector and health insurance is an effective way to invest across a broad range of healthcare areas, including growing demand for healthcare services amid Australia’s ageing and growing population.
I’m expecting dividend growth to continue for the foreseeable future. Its latest two declared dividends comes to a grossed-up dividend yield of 6.4%, including franking credits. That’s a great starting point for income, in my view.
Telstra Group Ltd (ASX: TLS)
Telstra is a leading ASX telecommunication share that has built an impressive 5G network that helps it continue to stay ahead of competitors.
Its excellent mobile division is key for delivering long-term growth and there was good news across the board in the FY26 half-year result. The average revenue per user (ARPU) rose by 5.1% year over year and mobile handheld users increased by 135,000, with growth in both metrics across postpaid handheld, prepaid handheld and wholesale users.
These growth figures allowed the business to deliver net profit growth of 9.4% to $10.5 billion. This saw earnings per share (EPS) grow by 11.2% and the dividend per share increase by 10.5% to 10.5 cents. Cash EPS increased by 19.7% to 14 cents.
It seems to me like the ASX blue-chip share is very effectively balancing investing for growth, delivering net profit growth and rewarding shareholders.
If I assume that Telstra will repeat the same dividend in another six months, it would have a grossed-up dividend yield of approximately 5.8% for FY26, including franking credits, at the time of writing.
With Australia becoming increasingly digital, I believe that Telstra will be able to benefit from that tailwind and continue winning new subscribers. I’m also optimistic the business can continue growing its wireless broadband subscribe count, providing 5G-powered broadband, which means capturing the margin that the NBN is currently taking.
The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.