Should you buy these 3 blue-chip beauties?

All three of these businesses look to be offering growth at a potential discount.

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When building a portfolio it's vital to start with established blue-chip companies with a reputation for strength and quality. That's because they can operate profitably whether times are good or bad, giving your portfolio a defensive base of steady income streams and capital gains over long-term horizons. Here are three to consider buying now.

When analysing stocks investors often pass over currency and regulatory risks as not critical, however sleep treatment business ResMed Inc (ASX: RMD) seems to have fallen victim to these two risks in recent times. The recent and unexpected appreciation of the Australian dollar against the Greenback has not helped Australian investors receiving quarterly dividends paid in U.S dollars, while regulatory changes to the Medicare program in the U.S. are also said to have impacted revenues.

It remains an innovative business with bags more potential though and with a cash hoard of more than a $1 billion it's a secure investment with all it needs to invest for future growth. Furthermore, selling for $4.88 it looks to be offering up one of the most prized investment offerings of all  – growth at a discount, with a handy quarterly-dividend payout yielding around 2%.

Like ResMed, Cochlear Limited (ASX: COH) is another blue-chip medical business with competition issues, however this is now reflected in the share price and the company's fundamentals remain as strong as ever.

The hearing-aid manufacturer delivers the gift of sound in over 100 countries and its innovative and best-in-class products mean it may be on the verge of another great leap forward.

In March it received U.S Food and Drug Administration approval for its latest Nucleus Hybrid L24 Implant System, the first of its kind to treat adults with severe to profound hearing loss in the higher frequencies, but who can still hear low-frequency sounds without hearing aids.

This kind of innovation should keep it ahead of the competition and eventually get it back to growing big profits, selling for $57.67 it also offers an attractive yield around 4.5%.

Another business that has taken a fall in part due to competitive headwinds is beverage bottler and supplier Coca-Cola Amatil Ltd (ASX: CCL). While rivals like Schweppes kept prices in check for fizzy drinks products, Coca-Cola Amatil pushed up prices, however its revenues for the financial year ending December 2013 were flat not fizzy, and net profit was substantially down.

A trip to the local supermarket owned by Woolworths Limited (ASX: WOW) would show investors how a bottle of Coca-Cola costs shoppers around a whopping 60% more than an average bottle from key soft-drink rival Pepsi. Coca-Cola Amatil attributes the premium pricing to the high cost of manufacturing and concentrate, while margins remain key, it's notable Pepsi can deliver an equivalent product so much cheaper.

The Cola Wars are one of the most legendary brand rivalries worldwide, with Coca-Cola Amatil's price strategy on the Australasian front coming into question recently.

The stock has slipped over the last year, although it continues to pay an attractive dividend and has growth runways ahead through its Indonesian business and recent move into the Australian beer market.

Foolish takeaway 

All three look solid businesses at attractive prices and all three are market leaders that have recently encountered competitive pressures from lower-cost rivals.  Personally, I would favour ResMed and Cochlear to move on quickest in delivering big returns to shareholders over long-term horizons.

 

Motley Fool contributor Tom Richardson owns shares in ResMed Inc. You can find him on twitter @tommyr345

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