When the dust finally settles on this market selloff, and it will, there are going to be a large number of dividend shares trading at very attractive levels.
Here are three top blue chip dividend shares that I would buy once the market volatility passes:
Coles Group Ltd (ASX: COL)
Coles is one of my favourite blue chip dividend shares. I think the supermarket giant is a great option for income investors due to its defensive qualities and solid growth prospects thanks to its refreshed strategy. This strategy is aiming to cut costs materially through efficiencies and automation. Combined with its strong track record of delivering like for like sales growth, I believe Coles is well-placed to grow its earnings and dividend for some time to come. At present its shares offer an estimated forward 4% dividend yield.
Commonwealth Bank of Australia (ASX: CBA)
The big four banks have all fallen heavily over the last few weeks amid concerns that the coronavirus could hurt both the local and global economy. Whilst the outbreak will undoubtedly hurt the economy in the short term, I expect it to bounce back strongly once the virus passes. This could make it worth taking advantage of the recent collapse in the Commonwealth Bank share price if you don't already have meaningful exposure to the banking sector. Even if you factor in a decent cut to its dividend in FY 2021, its shares provide a forward fully franked 6% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
A final blue chip dividend share to consider buying is Telstra. Despite its defensive qualities, the telco giant's shares have not been immune from the market selloff. They are down heavily over the last few weeks and hit a 52-week low this morning. I think this has created a buying opportunity once the market volatility eases. Especially given the impressive progress it is making with the T22 strategy and improving conditions in the telco market. Furthermore, I believe Telstra's 16 cents per share dividend is sustainable from its free cash flows and no further cuts will be necessary. This equates to a fully franked dividend yield of 5.3%.
