The Motley Fool

3 outstanding blue chip ASX shares to buy for FY20

A new financial year is just around the corner, so what better time to take a look at your portfolio and consider making a few changes.

If you have room for a blue chip share or three, then I think the ones listed below could be great options for FY 2020. Here’s why I like them:

Coles Group Ltd  (ASX: COL)

I think that this supermarket giant could be a good addition to a balanced portfolio due to its defensive qualities and solid growth prospects. The latter is expected to be driven largely through its focus on automation over the coming years. Coles aims to cut costs materially by automating its distribution centres and online shopping fulfilment. If the company can combine this with top line growth, it could be a big boost to its earnings and dividend growth over the next decade. At present I estimate that its shares offer a forward fully franked 4.4% dividend yield.

CSL Limited (ASX: CSL)

My favourite blue chip share on the Australian market is this biotherapeutics giant. CSL is made up of two businesses – CSL Behring and Seqirus. CSL Behring is the global leader in plasma therapies and Seqirus is the second biggest in the influenza vaccines industry. I believe both businesses have outstanding long-term growth prospects due to their leading products and deep research and development pipelines. Overall, I remain confident that CSL’s shares have the potential to be market beaters again over the next decade.

Telstra Corporation Ltd  (ASX: TLS)

Although this telco giant’s shares have surged significantly higher this year due to its improved performance and the early success of its T22 strategy, I don’t think it is too late to snap them up. Especially given the return of rational competition in the telco market and the company’s leadership position in 5G. The latter is expected to be a key driver of growth over the next few years and, combined with its significant cost cutting program, could lead to modest profit growth from FY 2020 onwards.

And here are three more blue chip shares that were recently rated as buys. Do you own them?

Our Top 3 Blue Chip Shares for 2019 – NOW AVAILABLE!

You’re invited! For a limited time, The Motley Fool Australia is giving away an urgent new investment report detailing our 3 TOP BLUE CHIP SHARES to own in 2019.

So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!

Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...

While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...

Even better, Stock #3 offers a whopping 6.5% grossed-up dividend! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.

You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!


James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET and 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.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here’s the best part: we think there’s one ASX stock that’s uniquely positioned to profit immensely from this explosive new industry… taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more