These blue chip ASX 200 shares are on sale right now

BHP Group Ltd (ASX:BHP) and these blue chip ASX 200 shares could be on sale at current prices. Here's why I would buy them…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) is home to a good number of high quality blue chip shares for investors to choose from. But with so much choice, it can be hard to decide which ones to buy.

To narrow things down for you, I've picked out three blue chip shares which I think are on sale after recent declines. They are as follows:

BHP Group Ltd (ASX: BHP)

The first blue chip share to consider is BHP. With the mining giant's shares down significantly from their 52-week high, I think now would be an opportune time to snap them up. Especially with iron ore prices remaining strong. This should mean BHP continues to generate high level of free cash flow again this year. I feel this bodes well for its dividends in FY 2020 and FY 2021 and could even lead to further share buybacks.

REA Group Limited (ASX: REA)

Another blue chip share to consider is this property listings company. Although the coronavirus outbreak is likely to weigh on the housing market and ultimately REA Group's profits in the short term, I believe it remains a high quality long-term pick. This is due to its market-leading position, strong management team, leading technology, and strong pricing power. Combined, I feel the company is well-positioned to deliver strong earnings growth over the next decade. REA Group's shares are down 32% from their 52-week high.

Wesfarmers Ltd (ASX: WES)

Lastly, I think Wesfarmers would be another good blue chip share to own after a 22% decline from its 52-week high. Due to the quality and diversity of its portfolio, I believe the conglomerate its well-placed for growth over the next decade. In addition to this, following the selldown of its stake in Coles Group Ltd (ASX: COL) this year, the company is cashed up and could bolster its portfolio with some earnings accretive deals in the near future.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended REA Group 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.

More on Share Market News

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Share Market News

ASX 200 takes the latest RBA interest rate verdict in stride

The ASX 200 looks to have shaken off today’s RBA interest rate call.

Read more »

A mature-aged couple high-five each other as they celebrate a financial win and early retirement
Share Gainers

Why this ASX 300 stock is soaring 12% after a disastrous year

This company has had a dramatic reversal of fortunes this Tuesday...

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Core Lithium, Imugene, Lifestyle Communities, and Mineral Resources shares are charging higher

These shares are having a good session. What's going on?

Read more »

A miner stands in front oh an excavator at a mine site
Broker Notes

Broker says buy the dip on ASX 200 uranium share with 69% upside

Shaw and Partners says this ASX uranium stock is trading at an attractive price point right now.

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

Why Domino's, Lynas, Paladin Energy, and St Barbara shares are sinking today

These shares are having a tough session. What's going on?

Read more »

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

4 ASX All Ords shares up 315% to 682% in a year!

Investors have sent these ASX All Ords shares flying higher. But why?

Read more »

Woman on a swing at a beach, symbolising passive income.
Dividend Investing

Overinvested in Fortescue shares? Here are two alternative ASX dividend stocks

Let’s unearth some other passive income opportunities.

Read more »

A person sitting at a desk smiling and looking at a computer.
Opinions

What I plan to do if the US election causes an ASX stock market sell-off

This could be a dramatic US election. Here’s how I’m approaching it.

Read more »