If you're wanting to add some blue chip ASX shares to your portfolio, then now could be a good time to do it.
This is because the market crash this year has dragged many blue chips down to levels which look extremely attractive to me.
Three blue chip ASX shares that I would buy with $5,000 are listed below. Here's why I like them:
REA Group Limited (ASX: REA)
The first blue chip to consider is REA Group. I'm a big fan of the realestate.com.au operator due to its high quality business model that continues to demonstrate its resilience. Last week the property listings company released its third quarter update and revealed a 1% increase in revenue to $199.8 million and an 8% lift in EBITDA to $119.6 million. This was despite a 7% decline in listings during the quarter. And while listings in the fourth quarter are likely to be markedly lower, its cost cutting plan looks set to offset much of this. Looking further ahead, when conditions improve I expect REA Group's earnings growth to accelerate once again.
SEEK Limited (ASX: SEK)
Another blue chip to consider buying is SEEK. I think this job listings company would be a great long-term option due to its very positive long term growth outlook. In FY 2019 SEEK delivered revenue of $1,537.3 million, which was up 18% on the prior corresponding period. Whereas now, management has set itself an aspirational revenue target of $5 billion by FY 2025. While this may be pushed back because of the coronavirus pandemic, I still expect the company to get there this decade. This could make it worth buying its shares and holding them for the long term.
Telstra Corporation Ltd (ASX: TLS)
A final blue chip share I would consider buying is Telstra. Although times have been hard for Telstra, I believe a return to growth isn't too far away. This is because the headwind from the NBN rollout is close to peaking and rational competition has returned in the industry. Combined with its massive cost cutting plans and the arrival of 5G internet, I think the future is looking a lot brighter for this telco giant.
