Many of us self-confessed sharemarket nerds are also full-time employees in our spare time, so we don't get the time we would like to research closely all the companies we'd like to invest in and therefore look at the picks of experts from The Motley Fool, or analysts like those at Morgans to point us in the right direction.
The analysts at Morgans recently put out a list of their seven favourite ASX 100 stocks to buy in May. The list consists of some of Australia's largest companies, however some are lacking in growth prospects – in my opinion.
Investors should remember that the greatest investors like Warren Buffett and Peter Lynch made their vast fortunes by finding companies that offer a combination of growth and regular income.
7 Blue Chips to Buy in May
Australia and New Zealand Banking Group (ASX: ANZ) offers a solid 5.5% dividend yield and may have some profit growth potential from its Asian operations, however slowing growth in China could derail those plans. Analysts also believe that ANZ will benefit from more rate cuts to come this year.
Carsales.Com Ltd (ASX: CAR) offers undervalued exposure to the rapidly growing Asian car market through its 22% holding in iCar Asia Ltd (ASX: ICQ) and analysts believe that struggling competitors will have to reign in advertising spending over the next six months.
Qantas Airways Limited (ASX:QAN) is expected to deliver record profits in the 2016 financial year as a result of lower oil prices and the $2 billion cost-out program currently in progress. Morgans also note a reduction in capacity growth, improving the outlook for ticket price rises.
Sydney Airport Holdings Ltd (ASX:SYD) could increase its dividends materially over the next two to three years as lower interest rates and a lower Australian dollar materially improve inbound flights and lower spending as a proportion of revenue.
Ramsay Health Care Limited (ASX: RHC) and ResMed Inc. (CHESS) (ASX: RMD) have been chosen because of a combination of an increasingly health conscious consumer, the aging western population, and greater than sector-average growth prospects.
The analysts at Morgans also found two infrastructure groups that offer attractive yields and stability. Retail property developer and manager Federation Centres Ltd (ASX: FDC) has been added to this month's list following the merger proposal with Novion Property Group (ASX: NVN) that will create Australia's 3rd largest REIT with $22bn of assets under management.
