When it comes to blue chip shares there are a large number of options on the Australian share market for investors to choose from.
Whilst I'm not ready to invest in the likes of QBE Insurance Group Ltd (ASX: QBE) or Telstra Corporation Ltd (ASX: TLS) just yet, I feel the five blue chip shares listed below could be in the buy zone.
Here's why I like them:
Australia and New Zealand Banking Group (ASX: ANZ)
Although it may be prudent to wait for the Royal Commission final report next week before investing, if there are no nasty surprises then I think ANZ Bank would be a great option. Especially with its shares changing hands on lower than normal multiples and providing a generous dividend yield. In addition to this, I believe its overweight exposure to the business lending market will help to offset the impacts of the cooling housing market this year.
BHP Group Ltd (ASX: BHP)
If you're looking for exposure to the resources sector then I think this mining giant could be a great option. On Tuesday BHP released its first half operational update. Although that update revealed that the runaway train derailment and outages impacted its performance during the half, management reiterated its production and unit cost guidance for the full year. If it delivers on this then I believe it will be well-placed to return even more funds to shareholders through dividends and buybacks.
Coles Group Ltd (ASX: COL)
Another blue chip share to consider is this supermarket giant. According to a note out of Citi earlier this week, its research has pointed to the grocery category being a highlight over the Christmas period. Furthermore, industry feedback appears to show that trading conditions remain favourable today, potentially putting Coles in a position to deliver a strong full year result in FY 2019.
CSL Limited (ASX: CSL)
My favourite blue chip share is this global biotech star. Due to its strong core business, growing plasma collection network, fledgling influenza vaccine business, and pipeline of lucrative products, I feel confident that CSL can continue to deliver above-average earnings growth for the foreseeable future.
ResMed Inc. (ASX: RMD)
Another healthcare share that I think would be a great option for investors is ResMed. The sleep treatment-focused medical device company has grown its earnings by an average of 16% per annum over the last decade. With demand for sleep treatment products expected to grow at a solid rate over the next decade, I believe ResMed can continue this positive run for some time to come.
