Brokers name 2 ASX blue chips to buy

Telstra Corporation Ltd (ASX:TLS) and this ASX blue chip share have been given buy ratings. Here’s what you need to know…

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If you’re wanting to add a few blue chip shares to your portfolio this month, then you might want to check out the ones listed below.

Here’s why these ASX blue chip shares are highly rated:

Cochlear Limited (ASX: COH)

Cochlear is one of the world’s leading implantable hearing device manufacturers. Thanks to its portfolio of high quality devices and its high level of investment in research and development, Cochlear has been growing its sales and earnings at a consistently solid rate over the last decade.

The good news is that with populations around the world getting older, its target demographic is expanding each year. This, and the industry’s high barriers to entry, bode well for its growth over the next decade or two.

One broker that is positive on the company is Macquarie. Late last year the broker put an outperform rating and $241.00 price target on its shares. This compares to the latest Cochlear share price of $208.11.

Telstra Corporation Ltd (ASX: TLS)

A second ASX blue chip share to consider is Telstra. Due to its improving outlook thanks to the early success of its T22 strategy and the easing NBN headwinds, Telstra has been tipped to return to growth in the not so distant future.

Before then, Telstra could make some radical changes that will see it split into three separate businesses. Management expects this to allow the company to take advantage of potential monetisation opportunities and unlock value for shareholders.

Goldman Sachs is positive on the company and currently has a buy rating and $3.80 price target on its shares. The broker is also forecasting a 16 cents per share fully franked dividend in FY 2021 and beyond.

Based on the current Telstra share price, this would provide investors with a generous 5.1% fully franked dividend yield.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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