If you're wanting to add some blue chip ASX shares to your portfolio in August, 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.
Three blue chip ASX shares that I would buy are listed below. Here's why I like them:
REA Group Limited (ASX: REA)
The first blue chip share to consider is this property listings company. Although trading conditions remain tough for REA Group following the coronavirus outbreak in Victoria, I expect listings to bounce back once the crisis passes. In the meantime, I'm optimistic that price increases, new revenue streams, and its international operations will offset some of this weakness. And when trading conditions do return to normal, I believe REA Group will be perfectly positioned to grow its earnings at a very strong rate over the decade that follows.
ResMed Inc. (ASX: RMD)
One of my favourite blue chip shares is ResMed. I believe the sleep treatment-focused medical device company has outstanding long term growth potential and could provide very strong return for investors in the future. This is thanks to its leading position in a market that looks set to grow strongly over the next decade due to the proliferation of obstructive sleep apnoea (OSA). According to a recent presentation, less than a fifth of OSA sufferers have been diagnosed or treated. This gives is a significant addressable market.
Telstra Corporation Ltd (ASX: TLS)
A final blue chip share to consider buying in August is Telstra. I like the telco giant due to its attractive valuation and the positive progress it has made with its T22 strategy. This strategy is creating a much leaner operation and one which I believe could return to growth in the not so distant future. Especially given the improving trading conditions in the industry, the easing NBN headwind, and the arrival of 5G internet. I expect the latter could give Telstra's key mobile business a major boost in the coming years.
