One of the most endeared terms in investing is 'blue-chip'. It's a very broad word that can mean different things.
It could simply mean the biggest businesses on the share market. Perhaps it means the oldest, or the most recognised businesses. Maybe it's meant to refer to the safest.
However, I don't think it's worth holding every blue chip and I don't think a portfolio needs to hold as much Commonwealth Bank of Australia (ASX: CBA) shares as Vanguard Australian Share ETF (ASX: VAS), even if you do just want to focus on 'blue-chips'.
I think a good option could be to invest in WAM Leaders Ltd (ASX: WLE). It's a listed investment company (LIC) which simply means it makes the investment decisions for you.
WAM Leaders is run by the high-performing and long-running Wilson Asset Management team, with the Lead Portfolio Manager being Matthew Haupt. Indeed, WAM has been around for two decades. This LIC specialises on the large-cap shares on the ASX.
Some of its main 20 holdings include packaging business Amcor Limited (ASX: AMC), casino operator Star Entertainment Group Ltd (ASX: SGR) and construction materials business James Hardie Industries plc (ASX: JHX).
Over the past year its portfolio has returned 16.2% before fees and expenses, outperforming the S&P/ASX 200 Accumulation Index by 2.2%.
One of WAM Leaders' main objectives is to pay a steadily-increasing dividend. Its dividend has increased each year since the first half of 2017 and it currently has a grossed-up dividend yield of 6.3%. It has only been operating for a couple of years.
Foolish takeaway
WAM Leaders shares are currently trading at a slight discount to the underlying value reported at the end of September 2018, after taking the dividend into account.
If I were looking to increase my ownership of Australia's blue chips then WAM Leaders would be one of my favourite choices to do so.