With so many quality blue chip shares to choose from on the Australian share market, it can be hard to decide which ones to buy.
To narrow things down I have picked out three blue chip ASX 200 shares which I think are standout buys. Here's why I like them:
Goodman Group (ASX: GMG)
Goodman Group is an integrated commercial and industrial property group which owns, develops, and manages industrial real estate globally. I think it is positioned perfectly for growth over the long term thanks to some very smart investments over the last decade. These include gaining exposure to the structural tailwinds of the ecommerce market with properties leased to the likes of Amazon and DHL. Based on how quickly online shopping is growing, especially after the pandemic, these assets are likely to be in demand for a long time to come. I expect this to underpin solid earnings and distribution growth throughout the 2020s. I think this makes it a blue chip share to buy.
REA Group Limited (ASX: REA)
Although times have been hard for this property listings company this year because of the pandemic, I've been very impressed at the resilience of its business model. Despite a sharp drop in property listings, it was able to reduce costs and grow its profits during the third quarter. The good news is that trading conditions are improving as social distancing restrictions ease and listing volumes appear to be recovering. I expect this to lead to REA Group's profit growth accelerating in FY 2021 and FY 2022.
Telstra Corporation Ltd (ASX: TLS)
A final blue chip share to look at buying is Telstra. I like the telco giant due to its T22 strategy, which is aiming to turn the company into a leaner and lower cost operation. In addition to this, the return of rational competition in the telco market, the easing of the NBN headwind, and its leadership position in 5G are other reasons to be positive. The latter is expected to be a key driver of growth over the next few years and could help underpin modest profit and dividend growth from FY 2022 onwards.
