If you’re interested in adding some blue chips to your portfolio then I would suggest you consider the three listed below.
Here’s why I think they are quality options for blue chip investors in 2020:
Coles Group Ltd (ASX: COL)
This supermarket operator could be well worth considering in 2020. Although its shares have been on fire this year, I still think they are good value for a long-term investment. Especially considering its solid growth prospects and attractive dividend policy. In respect to the former, I believe Coles’ focus on cost cutting through automation and efficiencies will underpin solid earnings growth over the next decade. Based on this and its current dividend policy, I estimate that its shares currently provide a fully franked forward 3.5% dividend yield.
CSL Limited (ASX: CSL)
My favourite blue chip on the ASX continues to be market darling CSL. I think the biotherapeutics company is arguably the best buy and hold option on the local market. This is due to its CSL Behring and Seqirus businesses. CSL Behring is the global leader in plasma therapies and Seqirus is the second biggest player in the influenza vaccines industry. I feel both businesses have outstanding long-term growth prospects due to their leading products and potentially lucrative development pipelines. Another positive is the strong demand for immunoglobulins and the increasing utilisation for secondary immunodeficiencies.
Telstra Corporation Ltd (ASX: TLS)
A final blue chip share to consider buying for 2020 is Telstra. I believe the telco giant is now in the buy zone thanks to its greatly improved outlook. I have been very impressed with the progress of its T22 strategy and the significant costs it has already stripped out. Overall, this strategy is creating a much leaner operation and one which could return to growth in the not so distant future. Especially given the improving trading conditions in the industry and the arrival of 5G internet. I expect the 2020 iPhone release to be the catalyst for mass 5G adoption. This could give Telstra’s mobile revenues a major boost.
The post Why I would buy Telstra and these ASX blue chip shares right now appeared first on Motley Fool Australia.
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James Mickleboro has no position in any of the stocks mentioned. 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. 2019