Nobody knows how long this market volatility will last, but I'm hopeful it will pass sooner rather than later.
In the meantime, I think now is a good time for investors to identify the shares they would like to add to their portfolio once the volatility eases.
If you're looking for blue chip shares, then I think the three listed below would be worth considering:
Coles Group Ltd (ASX: COL)
Coles is one of my favourite blue chips right now. I'm a big fan of the supermarket giant due its strong market position, defensive qualities, and positive growth prospects. The latter is thanks to its cost cutting plans, focus on automation, and strong track record of like for like sales growth. Another positive is that the company intends to payout 80% to 90% of its earnings to shareholders as dividends. I think this makes it a particularly attractive option in this low interest rate environment.
CSL Limited (ASX: CSL)
I think this biotherapeutics giant's shares are worth considering. This is because the majority of the company's therapies are used for conditions which have no real alternative treatments. In light of this, I don't expect CSL to be negatively impacted by the coronavirus outbreak. In fact, it could even experience an increase in demand for its convalescent plasma/immunoglobulins therapies. This has been the case during previous coronavirus outbreaks including SARS, MERS, and the 2009 H1N1 flu pandemic. Outside this, I believe it has strong long-term growth potential due to favourable industry dynamics, its leading products, and lucrative research and development pipeline.
Telstra Corporation Ltd (ASX: TLS)
A final blue chip share to consider buying is Telstra. I like the telco giant due to its attractive valuation and the positive progress it is making with its T22 strategy. This strategy is creating a much leaner operation and one which could return to growth in the not so distant future. Especially given the improving trading conditions in the industry and the arrival of 5G internet. I expect the latter could give Telstra's mobile revenues a major boost in the coming years.
