If you're wanting to add some blue chip ASX shares to your portfolio, then you're in luck. The Australian share market is home to a good number of blue chips which I believe could generate strong returns for investors over the next decade.
Three blue chip ASX shares that I would buy are listed below. Here's why I like them:
Cochlear Limited (ASX: COH)
One of my favourite blue chip ASX shares is Cochlear. I think it could be a fantastic long-term investment due to the ageing populations tailwind. As people age, their hearing tends to fade and will require some form of assistance. Due to the quality of Cochlear's products and its wide distribution network, I expect the company to benefit greatly from this increasing demand. Another positive is the industry's high barriers to entry, which I expect to limit competition.
ResMed Inc. (ASX: RMD)
Although ResMed's shares have been on fire in recent days, I don't believe it is too late to invest. This is because I think the sleep treatment-focused medical device company has outstanding long term growth potential. This is thanks to its industry-leading position in a market that looks set to grow strongly over the next decade due to the proliferation of obstructive sleep apnoea (OSA). According to a recent presentation, less than 20% of OSA sufferers have been diagnosed or treated.
SEEK Limited (ASX: SEK)
Another of my favourite blue chip ASX shares is SEEK. I think this job listings company would be a great long-term option for investors. Although its profit growth was soft in FY 2019, this was due to its heavy investment in future growth opportunities. In light of this, I feel investors need to focus on its top line performance. Which once again was very strong. SEEK delivered revenue of $1,537.3 million, up 18% on the prior corresponding period. Pleasingly, this strong growth looks set to continue, with management setting itself an aspirational revenue target of $5 billion by FY 2025.
