The ASX200 seems particularly unsafe and unmerry at this time of year for blue chips. When the ASX opens again it's likely to fall by more than 1% considering the S&P 500 fell 2.7% on Christmas Eve and the Japanese Nikkei 225 dropped nearly 5% on Christmas Day.
So, for a safe and merry portfolio, these three blue chips could be ones to buy:
CSL Limited (ASX: CSL)
CSL is Australia's leading healthcare business. The blood plasma and biotherapy giant may be suffering from valuation falls, but its profit continues to grow as it experiences non-cyclical growth due to its important health products. Indeed, some believe demand for its core product can grow at 10% a year for at least the next few years.
An exciting pipeline of products is likely to be the next generation of revenue generators for CSL. With the recent share price fall it's trading at 30x FY19's estimated earnings.
DuluxGroup Limited (ASX: DLX)
The falling housing market may be spooking investors about some real estate related businesses, but DuluxGroup could be a defensive option to ride out the pessimism.
It owns a variety of home improvement brands including Dulux, British Paints, Selleys, Yates and Cabot's. These products are cheap enough that they shouldn't experience too much, if any, fall in demand compared to say new bathrooms or kitchens.
It's currently trading at 17x FY19's estimated earnings.
Cleanaway Waste Management Ltd (ASX: CWY)
Cleanaway is a leading waste management business. Households and businesses continue to produce waste week after week. A growing population should directly lead to more total waste.
A waste business may not be the most exciting idea, but it could be steady grower for shareholders.
It's trading at under 25x FY19's estimated earnings with a grossed-up dividend yield of 2.2%.
Foolish takeaway
No share is impervious to a recession, but I believe the above three business are quality long-term buy and hold ideas.
But, they aren't the only opportunities out there. CSL may be generating pleasing growth, but it's also the most expensive of the three.
