These 2 ASX Blue Chip Shares Could Be Income Investors’ Picks

Top two blue chip ASX stocks with high dividend yields and strong and sustainable future growth.

Woodside Energy Group Limited (ASX: WDS)

One of the best blue chips ASX stocks with a current annual fully franked dividend yield of 5.05% and a market capitalisation of $61.84B.

WDS had announced on 25 August 2026, its half-yearly results for the period ended on June 2026. Operating revenue increased by 13% YoY to US$7.4B. The average realised price increased by 20% year-on-year to US$74 per barrel of oil equivalent. WDS has maintained high asset reliability, with operating LNG facilities achieving 98.7% reliability, Sangomar 99.5% and Shenzi 99.1%.

WDS reported stable EBITDA with muted growth to US$4.6B. Underlying NPAT increased by 7% YoY to US$1.3B. Woodside EPS up 27% YoY to US$0.88 per share. WDS announced a fully franked dividend of US$0.57 per share, resulting in an annualized dividend yield of ~5.9% and total dividend expenses of US$1B, representing 80% of underlying NPAT for 1H26.

WDS's operating cash flow stood at US$3B, and capital expenditure declined to US$1.6B, making free cash flow increase by 159% YoY to US$352M and total liquidity increase to US$8.2B. WDS had a gearing of 20% with a portfolio weighted average term to maturity of 5.1 years.

WDS expects total production volume to be 174-185 MMboe in FY26, with gas hub exposure of 30%. The management has given capital expenditure guidance of US$4B-4.5B for FY26.

Fortescue Limited (ASX: FMG)

One of the high yield blue chip ASX stocks with a current annual fully franked dividend yield of 5.97% and a market capitalisation of $55.33B.

FMG had announced on 24 August 2026 its full-year results of FY26 for the period ended on June 2026. Fortescue Limited has reported a revenue of US$17B, with total shipments reaching 201.3 Mt and a haematite realised price of US$91/dmt. FMG had reported a haematite average revenue realisation of 88%.

Underlying EBITDA grew by 9% YoY to US$8.6B with a margin of 51%, making underlying EBITDA per tonne reach US$50/dmt. FMG reported an underlying net profit after tax of US$3.5B, and underlying EPS reached US$1.13.

Net cash flow from operating activities increased by 6% YoY to US$6.8B, capital expenditure stood at US$3.6B, and free cash flow increased by 25% YoY to US$3.5B, making cash and cash equivalents reach US$5B (+17% YoY). Total debt is up 9% to US$5.9B. FMG announced a fully franked final dividend of A$0.46 per share, making the FY26 total dividend of A$1.08 per share with a dividend payout ratio of 65%.

FMG expects a total iron ore shipment of 197-207 Mt, with an iron bridge concentrate shipment of 11-14 Mt in FY27. The C1 unit cost for haematite is to be US$20.5-US$21.75 per wmt. FMG expects metals capital expenditure to be US$3.7B-US$4.7B and energy capital expenditure to be US$150M in FY27.

Conclusion

These two are the top two blue chip stocks in the ASX which provide a high dividend yield supported by strong operational and financial performance. Both companies are fundamentally strong with sustainable future growth.

(Source: Company Announcements)