ASX blue-chip shares can be some of the most consistent and reliable investments on the ASX. There are some names with very pleasing dividend yields.

Businesses that lead in what they do can be excellent stocks to own because of their strong market positions, enviable profit margins, and ability to retain earnings.

Let’s run through two top ASX blue-chip share contenders for passive income.

Telstra Group Ltd (ASX: TLS)

Telstra is Australia’s leading telecommunications company that continues to cement its position in the country.

Its mobile infrastructure and mobile division are key for the company’s success. In FY26, it added 274,000 mobile handheld users (or 1.9% growth), including 39,000 retail users and 235,000 wholesale users.

Mobile average revenue per user (ARPU) grew by 3.7% year-over-year to $45.33. It saw ARPU growth of 3.8% for postpaid handheld, 7.2% growth for prepaid handheld and 8.8% growth for wholesale.

Telstra continues to invest in its network. In FY26 alone, it upgraded nearly 1,200 mobile sites and built more than 150 new mobile sites.

It’s also investing in its fibre network, with more than 8,500km of fibre deployed in its ‘aura network’. The expected strategic investment has been increased to around $1.8 billion between FY23 and FY28. It’s expected to deliver a mid-teens internal rate of return (IRR) with a nine-year cash payback.

Telstra reported in FY26 that cash earnings per share (EPS) grew by 13.8% to 25.5 cents, funding a 10.5% rise in the annual dividend per share to 21 cents.

The projection on Commsec suggests the business could pay an annual dividend per share of 22 cents in FY27, 4.75% more than FY26. That would be a FY27 grossed-up dividend yield of 6.4%, including franking credits, at the time of writing.

WAM Leaders Ltd (ASX: WLE)

Listed investment company (LIC) WAM Leaders is the other ASX blue-chip share I want to highlight. A LIC’s job is to invest in other shares on behalf of shareholders.

It aims to actively invest in large, high-quality Australian companies.

At the end of August, its five biggest holdings, compared to the overall ASX 200 index, were Stockland Corporation Ltd (ASX: SGP), Rio Tinto Ltd (ASX: RIO), James Hardie Industries plc (ASX: JHX), Mirvac Group (ASX: MGR) and South32 Ltd (ASX: S32). This shows the types of ASX shares the WAM Leaders team want to invest in.

By generating investment returns, WAM Leaders can use profits to pay large, growing dividends to shareholders. It can offer investors both diversification and attractive dividends.

WAM Leaders has increased its annual dividend per share each year since it started paying dividends in FY17, so it has essentially reached a decade of continuous dividend growth, which is a great record.

The investment team have produced an average return of 12.2% since inception in May 2026, before fees, expenses and taxes, outperforming the S&P/ASX 200 Accumulation Index (ASX: XJOA) by an average of almost 3% per year.

In FY26, the ASX blue-chip share paid an annual dividend of 9.6 cents per share. That translates into a grossed-up dividend yield of 10.7%, including franking credits, at the time of writing.

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.

Wesfarmers Ltd (ASX: WES) shares could be among the best options for dividends from an ASX blue-chip share.

One of the main reasons to like the company is its high-quality businesses, such as Bunnings, Kmart, Officeworks, WesCEF (chemicals, energy and fertilisers), and Priceline.

The company’s profitability metrics really show how effective it is at making money.

In FY26, Wesfarmers reported a return on equity (ROE) of 35.5%, representing a 1.2 percentage point increase compared to FY25. Excluding significant items, it was a 4.3 percentage point rise for the ROE.

The return on capital (ROC) for its two key businesses is truly impressive. In FY26, Bunnings Group delivered a ROC of 69.2%, while Kmart Group’s ROC was 68.3%.

Most businesses would love to achieve an ROC close to 70%, and that’s exactly what the company delivers.

FY26 was a solid year for the company, with underlying earnings per share (EPS) climbing 8.3% and the dividend per Wesfarmers share being hiked by 7.8% to $2.22.

Let’s take a look at what analysts think could happen with the company’s dividend.

FY27 dividend projection

Wesfarmers is forecast to deliver a higher dividend for investors, partly based on the view that earnings could climb in FY27.

According to the projection on CMC Invest, the company is estimated to grow its annual dividend per share by 7.9% to $2.395. I don’t think many ASX blue-chip shares will increase their payout by 8% or more in the 2027 financial year.

If Wesfarmers does pay a dividend of that level in FY27, it would mean a grossed-up dividend yield of 4.6%, including franking credits, at the time of writing. That’s not the biggest dividend yield in the world, but the company could continue to deliver impressive dividend growth in the years ahead.

The estimate on CMC Invest suggests the business could then hike its annual dividend per share by another 6.7% in FY28.

How many Wesfarmers shares would it take to generate $8,000 of passive income?

If the business does pay $2.395 of dividend cash per Wesfarmers share in FY27, an investor would require 3,341 Wesfarmers shares to make $8,000 of passive income in FY27.

However, the above figure doesn’t include franking credits. If we include franking credits, it would take only 2,339 Wesfarmers shares to generate that much passive income in the 2027 financial year.

The post How many Wesfarmers shares do I need to buy for $8,000 of passive income? 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 positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Atlas Arteria Group (ASX: ALX) share price is in focus after the company flagged potential French tax increases impacting its APRR toll road interests, with TEILD rates possibly rising from 4.6% to as high as 12.2% and the TST extended but reduced.

What did Atlas Arteria report?

• The French government’s draft 2027 Budget Bill seeks to increase the Long-distance Transport Infrastructure Tax (TEILD), potentially up to 12.2%.
• The TEILD cost Atlas Arteria €126.7 million in FY25, with proceeds expected to more than double sector-wide.
• The Temporary Supplemental Tax (TST), previously expected to end in 2026, is now earmarked for extension but at a reduced take.
• Atlas Arteria’s APRR and AREA entities are subject to the TEILD, while ADELAC and A79 are not currently affected.
• Legal recourse avenues are being pursued by APRR regarding the TEILD changes.

What else do investors need to know?

The draft French Budget Bill will be debated over coming months, with the final tax rates or rules subject to change before passing into law. Investors should note that the higher TEILD could more than double the sector’s collective tax outlay from €600 million to €1.4 billion, directly affecting Atlas Arteria’s French assets.

Meanwhile, the Temporary Supplemental Tax (TST) – initially planned as a short-lived measure – will likely remain, but with a smaller government target, dropping total proceeds from €7.3 billion to €5 billion. Atlas Arteria will keep investors posted as legislation progresses.

What’s next for Atlas Arteria?

Atlas Arteria will closely monitor the French parliamentary debate and update the market when final legislation emerges. The company’s legal initiatives regarding the TEILD signal an intent to actively manage and defend its French revenue streams.

On a broader note, Atlas Arteria continues focusing on delivering value through sustainable road operations across its French, US, and German assets, aiming to balance regulatory changes with disciplined management.

Atlas Arteria share price snapshot

Over the past 12 months, Atlas Arteria shares have declined 24%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

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The post Atlas Arteria flags French tax hikes may impact toll road revenues appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.