The Australian share market is home to a large number of quality blue chip shares for investors to choose from.
In fact, there are so many it can be hard to decide which ones to buy.
To narrow things down for you, I've picked out three blue chip shares which I think are in the buy zone right now. They are as follows:
Coles Group Ltd (ASX: COL)
I think Coles is a great option for investors searching for a combination of value, growth, and income. At present I feel the supermarket giant's shares are trading on an attractive valuation in comparison to its peers, especially given its solid growth potential thanks to its focus on automation, cost cutting, and expansion opportunities. In respect to automation, this focus is expected to lead to material margin improvements over the long term, underpinning its profit growth. I feel this bodes well for Coles' dividend, given how management aims to pay out 80% to 90% of earnings to shareholders.
CSL Limited (ASX: CSL)
My favourite blue chip share on the Australian share market is this global biotherapeutics company. This is due to the quality of its businesses and products, its growing plasma collection network, and strong demand for immunoglobulins. I believe that these factors combined have put the company in a position to deliver strong earnings growth long into the future, which could result in its shares delivering outsized returns for shareholders once again over the next decade.
ResMed Inc. (ASX: RMD)
Another blue chip share that I think would be a great investment is this medical device company which is focused on the development of sleep treatment products. I think ResMed has strong long term growth potential due to its industry-leading products and its growing market opportunity. In respect to the latter, at present there are an estimated 10 million people in the United States with sleep apnoea, yet only 4 million of them have been diagnosed or treated. As more and more of these people become diagnosed, I expect demand for its products and services to increase strongly.
