The ASX 200 is home to a good number of blue chip shares which pay dividends.
Three which I think would make great additions to a balanced portfolio are listed below. Here's why I rate them:
Coles Group Ltd (ASX: COL)
One of my favourite blue chip dividend shares is this supermarket giant. I'm a big fan of the company due to its defensive qualities and solid growth prospects. The latter is thanks to its refreshed strategy. This strategy is aiming to cut costs materially through efficiencies and automation. Together with its long track record of delivering solid same store sales growth, I believe Coles is well-placed to grow its earnings and dividends over the next decade. Currently, I estimate that its shares offer a forward 4% dividend yield.
Macquarie Group Ltd (ASX: MQG)
Another blue chip ASX dividend share to consider buying is Macquarie. I like the investment bank due to the quality and diversity of its operations. This diversity means Macquarie can often grow its earnings when the big four banks are struggling. And while the pandemic is very likely to weigh on its performance in the near term, I believe it will bounce back when the crisis passes. Currently, I estimate that its shares offer investors a partially franked 4% FY 2021 dividend yield.
Woolworths Limited (ASX: WOW)
Finally, I think this conglomerate would be another top blue chip dividend share to buy. Woolworths is best known for its eponymous supermarket business, but also has a number of other businesses in different markets. These include Big W, BWS, Dan Murphy's, and a large number of hotels/pubs. I think these are quality businesses and the majority of them have defensive characteristics and solid growth potential. Overall, I think this makes Woolworths worth considering with a long term view. At present I estimate that its shares offer investors a forward fully franked 3% dividend yield.
