If you would like to add some blue chip shares to your portfolio, then you’re in luck.
The Australian share market is home to a good number of blue chips which I believe could generate strong returns for investors over the coming years.
Three blue chip ASX 200 shares that I would buy are listed below. Here’s why I like them:
ResMed Inc. (ASX: RMD)
I think this global medical device company could be a great buy and hold option. This is because I believe ResMed has outstanding long term growth potential due to the proliferation of obstructive sleep apnoea (OSA) and its leadership position in the growing market. A recent presentation reveals that the company estimates only 20% of OSA sufferers have been diagnosed. This should give ResMed a significant runway for growth over the next decade as more diagnoses are made.
SEEK Limited (ASX: SEK)
One of my favourite blue chip shares is SEEK. I think the job listings company could be a great long term investment thanks to its strong ANZ market position, positive outlook, and growing international operations. In FY 2019 SEEK delivered an 18% increase in revenue to $1,537.3 million. The good news is that management believes this strong growth can not only continue, but can accelerate in the coming years. It has set itself an aspirational revenue target of $5 billion by FY 2025.
Telstra Corporation Ltd (ASX: TLS)
Another blue chip share to consider buying for 2020 is Telstra. I believe the telco giant could be an excellent option for investors due to its greatly improved outlook. This is due to a combination of its material cost cutting, the arrival of 5G internet, the return of rational competition, and the near completion of the NBN rollout. Another positive is that I believe Telstra’s current 16 cents per share dividend is now sustainable from its free cash flows. This should mean there’s limited risk of another cut in the near future.
The post Why I would buy these top ASX 200 blue chip shares in 2020 appeared first on Motley Fool Australia.
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Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended ResMed Inc. and SEEK 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