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3 high quality blue chip ASX shares to buy now

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The Australian share market has been on fire in October and is pushing notably higher month to date.

I’m optimistic that this strong form can continue over the next 12 months and the S&P/ASX 200 Index (ASX: XJO) could make a push for 7,000 points again.

In light of this, I think now would be a good time to pick up some blue chip ASX shares before it is too late. 

But which ones should you buy? Three blue chips I think could generate strong returns in the coming years are listed below:

BHP Group Ltd (ASX: BHP)

If you’re looking for exposure to the resources sector, then I think BHP shares could be a great way to do this. With iron ore prices trading north of US$120 a tonne and copper prices close to a two-year high, the Big Australian is in a strong position to generate bumper free cash flows again in FY 2021. I expect this to lead to generous dividend payments over the next 12 months at least. Looking further ahead, I’m positive on BHP due to its growth opportunities, particularly in respect to its Energy division.

SEEK Limited (ASX: SEK)

Another blue chip ASX share to consider buying is SEEK. I continue to believe that the job listings company is one of the best long-term options on the Australian share market. This is because of its dominant ANZ business, its investment in future growth opportunities, and its rapidly growing Zhaopin business in China. All in all, I believe SEEK is capable of achieving its ambitious aspirational revenue target of $5 billion later this decade. This is more that triple what it recorded in FY 2020.

Telstra Corporation Ltd (ASX: TLS)

A final blue chip ASX share to consider buying is Telstra. I think the telco giant is a great option due to its attractive valuation and the positive progress it is making with its T22 strategy. This strategy is creating a much leaner business and one which could return to growth in the not so distant future. Especially given the easing NBN headwind and the arrival of 5G internet. I expect the latter to give Telstra’s mobile revenues a major boost in the coming years as adoption increases.

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 owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended SEEK 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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