If you want to construct a balanced portfolio, I think having a few blue chip ASX shares is a smart move.
Blue chip shares tend to be companies that are well-known, long-established, and have strong financial positions. In other words, they are not going anywhere any time soon, which makes them safer than the average share.
Though, it is worth remembering that not all blue chip ASX shares are equal and some are better than others.
Right now, I think three of the best ASX blue chip shares are the ones named below. Here's why I like them:
CSL Limited (ASX: CSL)
I think this biotherapeutics company is one of the best blue chip shares to buy. Especially after a recent pullback in its share price due to concerns that the pandemic could reduce its plasma collections and have a negative impact on the cost of future immunoglobulin and albumin production. While this concern is real, I'm confident that other parts of the business, such as vaccines, will offset this. Looking further ahead, I believe its current portfolio of therapies has the potential to drive solid earnings growth over the coming years. However, this should be boosted by CSL's pipeline of lucrative therapies under development which have significant potential.
Goodman Group (ASX: GMG)
I think Goodman Group is a blue chip share to buy. It is an integrated commercial and industrial property group which I believe is well-positioned for growth over the long term due to the strength of its portfolio and future developments. Especially given its focus on high-quality properties in key locations that it believes will deliver sustainable returns for investors. These include logistics and warehouse facilities which have exposure to the growing ecommerce market through relationships with Amazon, DHL, and Walmart.
Telstra Corporation Ltd (ASX: TLS)
Finally, I think that Telstra is another blue chip share to buy today. Times may have been hard for the telco giant over the last few years, but things are looking a lot more positive now. This is thanks to the negative impact of the NBN rollout coming close to peaking and its T22 strategy making very positive progress. Combined with the arrival of 5G internet and rational competition, I believe Telstra's earnings and dividend could start growing again from FY 2023.
