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2 ASX shares to buy and hold till 2030

Phil Harpur
Hold shares

So, you have some spare cash to spend on the sharemarket?

Maybe this is the first time you’ve bought some ASX shares. If so, congratulations! Or maybe you are looking to add to your current share portfolio.

Either way, here’s 2 of Australia’s largest companies that in my opinion both have a very bright future ahead and are worthy of a place in your portfolio.

Telstra Corporation Ltd (ASX: TLS)

Telstra is of course Australia’s largest telco, and has held the number 1 position in Australia’s telecommunications market for several decades now.

Although it has been undergoing some recent short-term pain as it restructures into a leaner company, I believe that this will position it well to remain in a dominant position and more effectively compete with the growing competition in the fixed broadband market, as Australia’s National Broadband Network (NBN) continues to be rolled out.

Telstra recently revealed that it’s on track to remove a total of $2.5 billion in costs by 2022. It also stated that it is on track with its EBITDA and free cash flow guidance in FY20, which is great news for shareholders and sets Telstra up for strong growth over the next few years.

Telstra’s leadership position and world class network in mobile communications positions it well to fully leverage the potential opportunities of 5G technology, providing Telstra with a real opportunity to also gain new mobile broadband subscribers from dissatisfied NBN customers.

Telstra also has an attractive price-to-earnings (P/E) ratio of 11.7, which is much lower than other telcos such as Vocus Group Ltd (ASX: VOC) and TPG Telecom Ltd (ASX: TPM).

CSL Limited (ASX: CSL)

CSL has had a phenomenal run on the Australian ASX over the past 2 decades, and now sits as the second-largest company on the ASX, with a market capitalisation of $135 billion.

The company has become a global market leader in blood plasma research and disease treatment, reaching more than 60 countries.

Over the last 3 years, its earnings growth has averaged 16.5% annually, which is very impressive for a company so big. Normally as a company becomes much larger, you see an inevitable slowdown in its growth, however CSL has somehow defied this trend.

Its strong growth has been driven by high investment in research and development to create new products, and the fact that CSL’s earnings base is essentially shielded from any business cycle downturn.

I feel that CSL is well positioned to continue to deliver strong earnings growth over the next decade, driven by a strong new product development pipeline and a continually growing global demand for its products.

It has a P/E ratio of 43.7, which is a bit on the high side, but still quite reasonable for such a high quality healthcare company with such a firmly entrenched market position.

The post 2 ASX shares to buy and hold till 2030 appeared first on Motley Fool Australia.

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Phil Harpur owns shares of CSL Ltd. and Telstra Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020