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. Especially after the coronavirus crash brought them down to more attractive levels.
Three blue chip shares that I think smart investors should buy are listed below. Here's why I like them:
Cochlear Limited (ASX: COH)
The first blue chip to look at is Cochlear. I like this hearing solutions company due to the ageing populations tailwind. As people age, their hearing will tend to fade and require some form of assistance. I expect this to lead to increasing demand for hearing solutions products over the next couple of decades. And thanks to Cochlear's quality products, its wide distribution network, and high level of investment in R&D, I expect it to benefit greatly from the trend.
ResMed Inc. (ASX: RMD)
Another blue chip share to consider buying is ResMed. I believe the global medical device company has outstanding long term growth potential due to the proliferation of obstructive sleep apnoea (OSA) and its leadership position in the market. Although the sleep treatment market is already very large, it could still grow materially over the next decade. This is because the company estimates that only 20% of OSA sufferers have been diagnosed at this point. Overall, I feel this positions ResMed perfectly for solid growth in the future.
Telstra Corporation Ltd (ASX: TLS)
A final blue chip share to consider buying is this telco giant. I think it is well worth considering due to the early success of its T22 strategy. Although this is likely to be disrupted slightly by the pandemic, I'm confident it will ultimately deliver on its aim of turning Telstra into a leaner and lower cost operation. In addition to this, I like Telstra due to the return of rational competition in the telco market and its 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 2022 onwards.
