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.
