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 Bendigo and Adelaide Bank Ltd (ASX: BEN) or Telstra Corporation Ltd (ASX: TLS) just yet, I feel the three blue chip shares listed below could be in the buy zone.
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. Last week BHP released its third quarter update. Although that update was a touch softer than expected, the company is still well-positioned to deliver a bumper profit result in FY 2019 thanks to its low costs and favourable commodity prices. I expect this to allow BHP to return the majority of its free cash flow to shareholders through dividends and buybacks.
Coles Group Ltd (ASX: COL)
I think that this recently listed supermarket giant could be a great option for investors right now. Thanks to its strong market position, store expansion opportunities, focus on automation, and rational competition, I remain confident that Coles can deliver solid earnings growth over the next decade. And with the company planning to pay out between 80% and 90% of its earnings as dividends, I expect this to make it a hit with income investors.
Westpac Banking Corp (ASX: WBC)
If you don't already have exposure to the banking sector then I think Westpac's shares could be a good option at current levels. Although the banking sector is going through a tough time at present, I still believe the bank can grow its underlying earnings and dividend at a modest rate over the coming years. This could make it worth considering, especially given its attractive trailing fully franked 7% dividend.
