If you're looking to add a few blue chip ASX shares to your portfolio this month, then the two listed below could be good options.
I believe these blue chip ASX shares have the potential to provide strong returns for investors over the next few years. Here's why I would buy them in June:
CSL Limited (ASX: CSL)
The first ASX blue chip share to consider buying is this leading biotherapeutics company. Its shares were surprisingly out of form in May and are now trading around 17% lower than their 52-week high. I think this is a buying opportunity for investors that have been wanting to get a piece of the company.
And while there is a danger that the pandemic could have impacted its plasma collections during lockdowns, I believe higher unemployment will support collections once the crisis passes. Outside this, I believe its long term outlook remains very positive. This is thanks to the strong demand for immunoglobulin products, its growing Seqirus vaccine business, and its burgeoning research and development pipeline. All in all, I believe CSL is a blue chip to own for the long term.
Telstra Corporation Ltd (ASX: TLS)
I think Telstra is another great blue chip ASX share to own right now. After several years of struggles, the telco giant appears close to returning to growth once again. This is thanks to a combination of its T22 strategy, rational competiton, and the easing of the NBN headwind.
In fact, if it had not been for the NBN headwind, Telstra's operating earnings would have been up on the prior corresponding period during the first half. In light of this and the current free cash flows it is generating, I believe its dividend cuts are over and 16 cents per share is the bottom. This equates to an attractive fully franked yield of almost 5%.
