If you're interested in adding some blue chips to your portfolio then I would suggest you consider the three listed below.
Here's why I think they are quality options for blue chip investors:
Cochlear Limited (ASX: COH)
I think Cochlear is a blue chip share to consider buying due to the ageing populations tailwind. As people age, their hearing will tend to fade and require some assistance. I expect this to lead to increasing demand for hearing solutions products over the next couple of decades. And thanks to Cochlear's high quality products, its wide distribution network, and high level of investment in R&D, I expect it to stay ahead of its rivals. Though, it is worth noting that the coronavirus pandemic will inevitably reduce sales in the short term due to the deferring of elective surgeries. But hearing doesn't suddenly improve. These missed sales will be back.
Coles Group Ltd (ASX: COL)
This supermarket operator could be a great option for investors looking at blue chips. Although its shares have been strong performers in 2020, I still think they are good value for a long-term investment. Especially considering its defensive qualities, solid growth prospects, and attractive dividend policy. In respect to its growth, I believe Coles' focus on cost cutting through automation and efficiencies will underpin solid earnings growth over the next decade.
CSL Limited (ASX: CSL)
I think the biotherapeutics company is the best buy and hold blue chip option on the local market. This is due to its high quality CSL Behring and Seqirus businesses. CSL Behring is the global leader in plasma therapies and Seqirus is the second biggest player in the influenza vaccines industry. Both businesses have outstanding long-term growth prospects due to their leading therapies and lucrative development pipelines. Another positive is the strong demand for immunoglobulins and the increasing utilisation for secondary immunodeficiencies. And while the coronavirus pandemic could impact plasma collections, I expect these to rebound strongly once conditions return to normal. Especially given how higher unemployment usually supports donations.
