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Are these the best blue chip shares to buy on the ASX 200?

I suspect that most investors will have been left thoroughly underwhelmed by the performance of popular blue chip shares such as Commonwealth Bank of Australia (ASX: CBA) and Telstra Corporation Ltd (ASX: TLS) in 2018.

But I wouldn’t let that put you off investing in Australia’s biggest companies as I feel confident that a number of them are capable of providing strong gains for investors this year.

Three blue chip shares that I think would be worth considering are as follows:

Aristocrat Leisure Limited (ASX: ALL)

Aristocrat Leisure is one of the world’s leading gaming technology companies and could be a great blue chip option in 2019. This is thanks largely to its strong long-term earnings growth potential from its exposure to the high growth social and digital gaming markets. At the end of FY 2018 the company’s Digital segment had 8.1 million daily active users each generating 40 U.S. cents of revenue per day. With the company due to release several new games this year and increase its user acquisition spend significantly, I believe the segment could underpin another year of strong earnings growth in FY 2019.

BHP Group Ltd (ASX: BHP)

With this mining giant’s shares trading ex-dividend tomorrow for its US$1.02 (A$1.43) per share fully franked special dividend, now could be an opportune time to make an investment. Especially given the way trade war talks are going between the United States and China. If these two powerhouses can come to an agreement, then I suspect that global economic growth will be robust this year and lead to strong demand for the key commodities that BHP produces. This could put it in a position to generate significant free cash flow again in FY 2019.

CSL Limited (ASX: CSL)

My favourite blue chip share on the Australian share market would have to be this global biotherapeutics company. I believe it is one of the highest quality companies in Australia and capable of continuing its above-average earnings growth for the foreseeable future thanks to its strong core business, expanding plasma collection network, fledgling influenza business, and pipeline of lucrative products.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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