2 blue chip ASX dividend shares considered to be purchases

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Are you looking for dividend-paying stocks to buy? If you are, then you might want to look at the two blue chips listed below.

Here’s why those dividend stocks might be in the buy zone:

The first ASX dividend share to consider is BHP. The shares of this mining giant have come under significant pressure since mid-August. This was of course brought about by a sharp drop in the price of iron ore.

Although disappointing for shareholders, it could be a buying opportunity for non-shareholders. This is because the price of iron ore is still at a level that generates significant free cash flow for BHP. In addition, the prices of other raw materials rose, partly offsetting the decline in iron ore.

So much so that the Morgans team still believes BHP will be able to pay a very generous dividend again in fiscal 2022. Its analysts are forecasting a dividend of $ 3.95 per share for that fiscal year. Based on the current BHP share price of $ 37.93, this will mean a 10.4% return for investors.

Morgans has an additional rating and a price target of $ 46.05 on the miner’s stock.

Another top-notch ASX dividend share that Morgans is positive on is Coles.

He likes the supermarket giant because of its strong market position, attractive valuation compared to its rival Woolworths Group Ltd. (ASX: WOW) and its attractive dividend yield.

On the latter, the broker expects a fully franked dividend of 61 cents per share in fiscal 2022. Based on the current Coles share price of $ 17.83, that will mean a return of 3 , 4% for investors.

Morgans has an additional rating and a target price of $ 19.80 on its shares.


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