For many investors, blue chip shares are the foundation on which they build their portfolio.
This is due to the strength of their business models and often their long track record of delivering consistent earnings growth.
But which blue chip shares would be good options today? Two to consider are listed below:
ResMed Inc. (ASX: RMD)
The first blue chip share to look at is ResMed. It is a medical device company with a focus on sleep treatment products and ventilators. It has been growing at a consistently strong rate over the last decade and looks well-placed to continue this positive form.
This is due to its world-class, cloud-connected hardware and software solutions and its huge addressable market. Management currently estimates that there are 936 million people with sleep apnoea globally. With the majority of these sufferers undiagnosed, it gives the company a significant runway for growth.
In addition to this, the company notes that there are 380 million people who suffer from chronic obstructive pulmonary disease (COPD) and over 340 million people living with asthma. That's a further 720 million people that could benefit from ResMed's products.
Last month, analysts at Morgans put an add rating and $30.99 price target on the company's shares.
Telstra Corporation Ltd (ASX: TLS)
Another blue chip to look at its Telstra. While times have been hard for the telco giant, things are starting to look a lot rosier. This is thanks to its T22 strategy delivering on its objectives, the NBN headwind easing, and 5G internet taking off.
In addition to this, the company recently announced plans to split into three separate entities. This is expected to unlock value for shareholders.
One broker that is a fan of its plan is Credit Suisse. In response to the news, the broker retained its outperform rating and $3.85 price target on its shares. Its analysts believe Telstra's plan reinforces its view around the underlying value of Telstra's assets.
Another positive is that the broker believes Telstra will maintain its 16 cents per share fully franked dividend for the foreseeable future. Based on the current Telstra share price, this represents a fully franked 5.3% dividend yield.
