Looking for some reliable blue-chips to add to your portfolio? Here are 3 strong candidates:
Platinum Asset Management Limited (ASX: PTM)
Like many fund managers, Platinum boasts attractive economics – as long as performance is good, more funds keep rolling in and the annual fees generated continue to rise without much of an increase in costs. That also works in reverse, as we saw at the recent half year results, but Platinum continues to post respectable performance at its funds – and it also pays a 6% dividend.
While the fund management industry has been criticised for its fee model for a while, the fact is that higher fees can be justified if performance is good, and Platinum has a good track record there. Likely to be a lumpy investment due to its correlation with global stock markets (when they plunge, so probably will Platinum), Platinum is still an attractive investment prospect.
iShares S&P500 ETF (ASX: IVV)
The iShares S&P/500 Exchange Traded Fund (ETF), or ISCS&P500 CDI 1:1 (ASX: IVV), as it is known to Google, is an index tracking fund that tracks the US S&P/500 index, which includes giants like Adobe, 3M, American Express, and more. While the dividend is not very large at about 1.3%, it is paid quarterly and is an easy and attractive way to get exposure to many of the world's biggest businesses.
Shareholders also take on currency risk, as this ETF is in Australian Dollars while the assets it buys are in US Dollars, but the cost of the ETF is very low at 0.04% per annum. This ETF is a straightforward way to get benchmark returns and foreign currency diversification.
TPG Telecom Ltd (ASX: TPM)
Up somewhat from 2-year lows struck in February, TPG Telecom appears an attractive blue chip trading at cheap prices. As the recent results showed, TPG's core businesses continued to grow while the iiNet acquisition resulted in a significant boost to profits. Much like peer Vocus Group Ltd (ASX: VOC), TPG pays a low dividend as it is still investing heavily in its fibre networks.
However, the defensive nature of the company's services, combined with the long life of its network and the strong tailwinds for data demand, should see TPG delivering attractive returns to shareholders over the next decade or more.
