Are you wanting to buy some blue chip ASX shares for your portfolio? Then you might want to check out the ones listed below.
These quality companies have been tipped as blue chips to buy. Here's what you need to know:
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BHP Group Ltd (ASX: BHP)
The first blue chip share to look at is mining giant BHP. If you're looking for exposure to the resources sector, BHP could be a great way to do it.
This is due to the quality of the Big Australian's diverse operations and favourable commodity prices. The latter is particularly the case for iron ore, with the steel making ingredient recently hitting record highs. And while it has pulled back since then, it is still generating significant free cash flow from current prices.
This is likely to lead to bumper earnings and dividend payments for shareholders in FY 2021 and FY 2022.
Macquarie expects this to be the case and has put an outperform rating and $57.00 price target on its shares.
ResMed Inc. (ASX: RMD)
Another blue chip for investors to consider is ResMed. It is a medical device company with a focus on sleep disorders.
Although the pandemic has negatively impacted sleep disorder diagnoses and referrals, ResMed has continued to grow at a solid rate over the last 12 months.
Pleasingly, ResMed still has a long runway for growth over the next decade and beyond. In fact, management has set itself a goal of improving 250 million lives in out-of-hospital healthcare in 2025.
Helping it achieve this goal will be its rapidly growing digital health ecosystem, which reached over 12 million cloud connectable medical devices in 2020. This provides ResMed with strong recurring and sticky revenues and high quality data.
Analysts at Credit Suisse are positive on the company. The broker currently has an outperform rating and $29.00 price target on its shares.
