The S&P/ASX 50 index is regarded by many as Australia's most important large-cap equity index.
It has been designed to represent 50 of the largest and most liquid shares listed on the Australian share market by float-adjusted market capitalisation.
Whilst I wouldn't necessarily be a buyer of all the shares on the index, I think there are some top options for investors to consider. Especially after the coronavirus induced market crash over the last two months.
Three I would buy today are listed below:
BHP Group Ltd (ASX: BHP)
If you don't mind investing in mining shares, then I feel BHP would be worth looking at. I believe it is the highest quality option in the resources sector due to its diverse and low cost operations. In addition to this, with the price of iron ore remaining favourable, I believe it is well-placed to generate strong free cash flows again this year. And with its balance sheet in such a strong position, I suspect the majority of this will be returned to shareholders through dividends.
CSL Limited (ASX: COL)
Another ASX 50 share to look at is biotherapeutics giant CSL. I think CSL would be a fantastic long term investment option due to its in-demand products, growing plasma collection network, and its burgeoning product pipeline. The latter is supported by CSL's significant investment in research and development (R&D) each year. It tends to invest around 10% to 11% of sales into its R&D efforts. This led to the company investing a whopping US$832 million in R&D across its businesses in FY 2019. I expect these investments to allow it to maintain its market-leading position and underpin solid profit growth for years to come.
Telstra Corporation Ltd (ASX: TLS)
A final ASX 50 share to consider buying is Telstra. I've been very pleased with the success it is having with its T22 strategy and believe it is making Telstra a much stronger company. In addition to this, with the end of the NBN rollout now in sight, I remain confident that a return to the good days is not too far away. In light of this, I think now would be a good time to consider a long-term investment. Especially if you're an income investor, as Telstra's shares currently provide an attractive estimated 5% forward dividend yield.
