I think having a few blue chip ASX shares in your portfolio can be a good thing.
This is because they tend to be more stable than average, pay dividends, and have strong market positions. All in all, I feel these are the qualities you want for core holdings in a portfolio.
Three blue chip shares which I think also offer solid growth potential are listed below. Here's why I think this makes them top options for investors right now:
Coles Group Ltd (ASX: COL)
The first blue chip share to buy is Coles. I think it is one of the best blue chips on the Australian share market due to its defensive qualities and solid long term growth potential. The latter is thanks to its strong market position, online growth, expansion opportunities, and cost cutting plans. Another positive with the supermarket giant is that it offers investors a reasonably attractive dividend yield. Based on the current Coles share price, I estimate that it will provide a 3.1% fully franked dividend yield in FY 2021.
CSL Limited (ASX: CSL)
Another blue chip to consider buying is this biotherapeutics giant. I think CSL is the highest quality company on the Australian share market and well-positioned to generate solid returns for investors over the next decade. This is thanks to its lucrative and in-demand therapies that are treating conditions which have no real alternative treatments. In addition to this, the company has an extremely promising pipeline of therapies under development. These have the potential to generates billions of dollars in sales in the future if all goes to plan.
Goodman Group (ASX: GMG)
A final blue chip share to consider buying is this commercial and industrial property company. I believe Goodman Group is well-positioned for long term growth due to the strength of its portfolio and future property developments. Especially given its focus on high-quality properties in key locations that it believes will deliver sustainable returns for investors. These include logistics and warehouse facilities which have exposure to the rapidly growing ecommerce market.
