3 blue chip ASX shares with dividend yields over 5% today

When it comes to the S&P/ASX 200 Index (ASX: XJO) our collective love of dividends dictates that our blue chip shares are normally committed dividend payers. That stands in stark contrast to the United States, where many of the biggest companies don’t even pay a dividend.

But in this post-COVID world, choosing quality dividend shares has never been more nuanced. A few years ago, it would have been unthinkable to most investors that the ASX banks would have trailing dividend yields under 2%. Yet today, Westpac Banking Corp (ASX: WBC) shares offer a trailing yield of just 1.27% on current pricing.

So here are 3 ASX dividend shares that offer a whole lot more. Each of these has a grossed-up trailing yield of 5% or greater today:

3 blue chip ASX dividend shares with yields over 5% today

Telstra Corporation Ltd (ASX: TLS)

Telstra has long been a favourite of the ASX dividend investor. And 2020 proved its worth in that regard. Unlike many ASX 200 shares, Telstra did not cut its dividend last year, holding its payouts steady at 16 cents per share. And since Telstra’s share price has been steadily falling over the past month or so, the yield of this dividend has been growing. At today’s share price (at the time of writing) of $3.04, Telstra is offering a dividend yield of 5.26%, or 7.51% grossed-up with Telstra’s full franking. The company’s management has committed to once again pay out 16 cents per share in dividends in 2021 as well.

Coles Group Ltd (ASX: COL)

Coles was one of the ASX companies that arguably benefitted from the pandemic last year. We all know about the infamous panic hoarding that went on in 2020, after all. Coles’ robust results in 2020 allowed this supermarket company to actually increase its dividend last year, and again just last month. Like Telstra, Coles shares have also been falling over the past month or so. That gives Coles’ dividend a yield worth 3.93% on current pricing, or 5.61% grossed-up with full franking.

BHP Group Ltd (ASX: BHP)

BHP has had a pretty good run over the past few months and has recently just broken its all-time high share price. Not bad for an ASX 200 company that was founded in 1851!

BHP has been benefitting enormously from rising commodity prices. Three of its four ‘pillar commodities’ in iron ore, oil and copper have all seen healthy price rises in recent months. And if BHP is selling its commodities for higher prices, naturally there is more cash around for dividends. On the current BHP share price, the ‘Big Australian’ has a trailing dividend yield of 4.42%, which grosses-up to 6.31% with full franking.

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Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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.

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