ASX blue-chip shares can be among the most appealing picks for passive income due to their reliably high dividend yields.

The strongest businesses usually have the best balance sheets, highest margins and the best grip on their market share.

I’m going to talk about two ideas for dividends that I’d call ASX blue-chip shares.

Medibank Private Ltd (ASX: MPL)

Medibank is the largest private health insurer in Australia with its Medibank and ahm brands. The company also has a growing healthcare division following multiple acquisitions.

Healthcare is a defensive industry with largely consistent demand, helping Medibank generate defensive profits that then fund consistent dividends.

However, the Medibank dividend isn’t being maintained at the same level. Aside from 2020, its annual payout has increased every year during the past decade.

In the recent FY26 result, Medibank increased its annual payout by 6.7% to 19.2 cents per share. That came after a 6.7% rise in group operating profit and a 27.5% rise in net profit.

In FY27, the business is aiming to grow its market share in a disciplined way, including improved volume momentum for the Medibank brand. It also expects its non-resident private health insurance segment to deliver solid gross profit growth. The Medibank Health segment expects to deliver around 25% profit growth in FY27 thanks to Better Medical.

At the time of writing, its FY26 payout translates into a grossed-up dividend yield of 5.7%, including franking credits.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment company (LIC) that focuses its investments on ASX blue-chip shares. The LIC structure allows WAM Leaders to turn the pleasing investment returns it makes into a growing annual dividend.

Impressively, its portfolio has returned an average of 12.1% per year since inception in May 2026, before fees, expenses and taxes. That level of return has allowed the business to increase its annual dividend every year since FY17. The FY26 annual dividend was increased by 2.1% to 9.6 cents per share.

That payment translates into a FY26 grossed-up dividend yield of 10.2%, including franking credits, at the time of writing. That’s an incredibly high (and attractive) payout, in my opinion.

Some of the businesses in the portfolio that it had a large active position in at the end of July 2026 included Mirvac Group (ASX: MGR), Stockland Corporation Ltd (ASX: SGP), Rio Tinto Ltd (ASX: RIO), Amcor (ASX: AMC) and GPT Group (ASX: GPT).

However, there were also typical names in the holdings such as Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), Goodman Group (ASX: GMG) and BHP Group Ltd (ASX: BHP).

I think its ASX blue-chip share strategy will help it continue to deliver pleasing returns over the long term.

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 positions in and has recommended Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended BHP Group, Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN) has just given investors a fresh look at how the business is performing.

The shares have had a difficult year, but I think the current weakness has created an attractive long-term opportunity.

So, would I buy Qantas shares today? My answer is yes.

The business still looks healthy

Qantas’ FY26 result was not perfect. Higher fuel costs and disruption from the conflict in the Middle East weighed on earnings.

But I still saw plenty to like.

Demand remained resilient across much of the network, while Qantas Domestic revenue increased 5% and Jetstar Domestic earnings grew 15%. Qantas also reported its highest customer satisfaction levels in a decade.

I think this is encouraging because Qantas has spent the past few years working to rebuild its relationship with customers while improving operations.

Qantas Loyalty is another valuable part of the business. Underlying earnings from the division increased 12% in FY26, and management expects further growth in FY27.

That provides another source of earnings alongside the airline operations themselves.

Fleet renewal could improve the business

I am also positive about Qantas’ major fleet renewal program.

Seventeen new aircraft arrived during FY26, with up to another 31 expected in FY27. The airline is introducing newer A321XLRs, A220s, A350s, and 787s across its network.

New aircraft can improve fuel efficiency, reduce operational complexity, and provide a better passenger experience.

They can also open routes that were previously difficult to operate economically.

I think Project Sunrise is the most obvious example, with Qantas preparing to begin non-stop Sydney to London flights using its new A350-1000ULR aircraft.

I think this investment could leave Qantas with a stronger and more efficient airline several years from now.

The price looks attractive to me

Qantas shares are trading around $9.61 on Friday and are down approximately 20% over the past 12 months.

According to CommSec, consensus earnings per share forecasts are $1.16 in FY27 and $1.15 in FY28.

That puts the shares on a forward price-to-earnings ratio of just over eight times.

I think that looks attractive for a business with strong domestic brands, an international network, a growing loyalty operation, and significant investment underway to modernise its fleet.

Income investors have something to consider as well. CommSec forecasts dividends per share of 44.8 cents in FY27 and 56.2 cents in FY28. This represents dividend yields of approximately 4.7% and 5.8%.

Foolish takeaway

I would buy Qantas shares at around $9.61.

Airlines will always come with risks, particularly from fuel prices, economic conditions, and geopolitical disruption.

But after a 20% decline, I think the current price leaves enough room for those risks while giving investors exposure to a business that could become stronger as its fleet renewal progresses.

The post Would I buy Qantas shares today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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.

I think the best ASX dividend shares can provide investors with a mixture of capital growth and dividends, which could suit grandparents, children and anyone in between. Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) could be the best pick of the bunch.

Past performance is not a guarantee of future performance, but over the last four years, the Soul Patts share price has risen by around 70%. That’s a pleasing level of growth, and that’s before we’ve even talked about the dividend.

Soul Patts is an investment conglomerate. Let’s get into why it’s such an appealing option for dividend income.

Diversification

As an investment house, the business has built up a diversified and impressive portfolio.

The company has a flexible mandate to invest in almost any assets in different markets.

For example, Soul Patts is currently invested in resources, energy, telecommunications, swimming schools, agriculture, water entitlements, electrification, financial services, retirement living, industrial property, building products, credit and plenty more.

This portfolio provides Soul Patts with a defensive and largely uncorrelated source of cash flow to pay dividends.

I like that the ASX dividend share regularly adds to the portfolio (and occasionally divests) to ensure the portfolio is future-focused and has a compelling future.

Longevity

To make any investment for a grandparent, I’d want to invest in something that has a long track record and is unlikely to result in a permanent capital loss.

The diversification of the ASX dividend share’s portfolio is useful, but I think its longevity is even more impressive.

It has been listed in Australia for more than 120 years, making it one of the oldest businesses on the ASX.

If there was going to be one business within the S&P/ASX 200 Index (ASX: XJO) that I’d bet would still be around in another 20 or 30 years, it’d be Soul Patts because of the ASX dividend share’s ability to change its portfolio.

Reliable ASX dividend share

I think its reliable dividend is the top reason to like Soul Patts as an ASX dividend share.

The business has increased its annual ordinary dividend every year since 1998. No other ASX share has a record like that.

Perhaps just as impressively, Soul Patts has paid a dividend every year for more than 120 years, including through wars, pandemics, economic crashes, and so on.

I have a high level of optimism that the company can continue its dividend growth record for grandparents and every other aged investor wanting an ASX dividend share.

The post The 1 ASX dividend share I’d buy for my grandparents appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.