2 ASX blue-chip shares offering big dividend yields

ASX blue-chip shares can be some of the most reliable ones to own for passive income because of how defensive and reliable the underlying earnings are, leading to a solid dividend yield.

I'm going to highlight two leading ASX businesses with good starting yields, which also grew their payouts in FY26. Both companies also have the building blocks to deliver growth from here.

Telstra Group Ltd (ASX: TLS)

Telstra is Australia's leading telecommunications business, with the most subscribers, the biggest network, appealing spectrum assets and so on.

Given its market-leading position, Telstra feels confident in charging its subscribers more with price increases. While that may mean slower subscriber growth at times, it can generate stronger profit margins than competitors.

The ASX blue-chip share is benefiting from Australia's ongoing digitalisation, leading to more devices needing an internet connection. The recent network outage showed just how much reliance there already is on Telstra's mobile network.

As time goes on and 5G and 6G develop, I think more households will rely on Telstra, including the potential of replacing the NBN connection with a 5G-powered home wireless broadband connection.

In the FY26 half-year result, the business decided to hike its interim dividend by 10.5% to 10.5 cents per share.

I expect the business will hike its FY26 annual dividend per share by 10.5% to 21 cents. That translates into a potential grossed-up dividend yield of 5.9%, including franking credits at the time of writing.

Centuria industrial REIT (ASX: CIP)

This business describes itself as Australia's largest pure-play industrial real estate investment trust (REIT).

The ASX blue-chip share has strong rental stability because of its relatively long rental contracts. It currently has a weighted average lease expiry (WALE) of more than six years, providing investors with strong rental income visibility and security.

Most of the REIT's rental profits are paid out as a distribution each year. Its FY26 annual payout of 16.8 cents per security translates into a distribution yield of 5.5%. I'd say that yield is competitive with the best term deposits out there right now.

I'm expecting the ASX blue-chip share's distribution to increase in the long-term as it's powered by strong rental growth. Industrial properties in city locations are in high demand, which is driving the rental potential of the real estate higher.

Some supporting factors for the ASX blue-chip share include e-commerce adoption, the data centre boom and refrigerated warehouses.

Earlier this year, the business said its portfolio was 20% under-rented, so as those contracts come up for renewal, I expect the business to continue to see strong re-leasing spreads (i.e., the difference between the rent on a new contract and the old one).

I think both of these ASX dividend shares can provide investors with good resilience and pleasing dividend yields in the years to come.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

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.

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