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3 high quality blue chip ASX 200 shares to buy

One group of shares that are particularly popular with investors are blue chip shares.

A blue chip is a large and well-established company that has been around for many years and is often a leader in its field.

The good news is that the ASX is home to a large number of blue chips for investors to choose from. While not all of these shares are necessarily buys, I believe the ones listed below are standouts picks.

Here’s why I would buy these blue chip ASX 200 shares:

Coles Group Ltd (ASX: COL)

I think Coles is a great blue chip option for investors. I’m a big fan of the supermarket operator as I believe it offers an attractive combination of growth and income. This is due to its positive long term outlook thanks to its defensive qualities, focus on automation, cost cutting, and expansion opportunities. In respect to automation, this focus is expected support margin improvements over the long term. I feel this bodes well for Coles’ dividend growth over the next decade.

Telstra Corporation Ltd (ASX: TLS)

Another blue chip share to consider buying in August is Telstra. After several disappointing years of earnings declines and dividend cuts, I believe the future is looking increasingly positive for the telco giant. This is thanks to its sizeable cost cutting, the simplification of its business, and the easing of the NBN headwind. In fact, Telstra’s operating earnings would have increased slightly during the first half if it were not for this headwind. Overall, I believe now could be the time to make a long term investment in its shares.

Woolworths Limited (ASX: WOW)

A final blue chip share to consider buying is this conglomerate. I like Woolworths due to its quality brands, defensive qualities, and strong management team. Combined, I believe they have put the company in a position to deliver solid earnings and dividend growth over the long term. Another positive is the planned spin off of its hotels business. Although this has been pushed back because of the pandemic, I expect it to unlock value for shareholders if it goes ahead in the future.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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