2 excellent ASX 200 blue chip shares named as buys

These blue chip ASX shares could be worth a look…

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Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

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Are you wanting to buy some blue chip ASX 200 shares for your portfolio? Then you might want to check out the ones listed below.

These quality companies could have the potential to grow at a solid over the next decade. As a result of this, they have been tipped as blue chips to buy. Here’s what you need to know:

Coles Group Ltd (ASX: COL)

The first blue chip ASX 200 share to look at is Coles. It is of course one of Australia’s big two supermarket chains with over 800 locations across the country. It also has over 900 liquor retail stores, over 700 Coles express stores, and the flybuys loyalty program.

From its store network, the company processes more than 21 million customer transactions each week, providing consumers with products from thousands of farmers and suppliers.

Due to this strong market position and its defensive qualities, a number of brokers have tipped Coles as a blue chip to buy. One of those is Goldman Sachs, which currently has a buy rating and $19.40 price target on its shares.

Goldman believes the supermarket giant is well-positioned for growth in the coming years and is forecasting solid increases in earnings and dividends. In respect to the latter, the broker has pencilled in fully franked dividends per share of 62 cents, 67 cents, and then 73 cents over the next three financial years. Based on the latest Coles share price of $17.66, this will mean yields of 3.5%, 3.8%, and 4.2%, respectively.

ResMed Inc. (ASX: RMD)

Another blue chip ASX 200 share for investors to look at is ResMed. It is a medical device company with a focus on sleep disorders.

Its cloud-connected medical devices are transforming care for people with sleep apnea, COPD, and other chronic diseases. In addition, its comprehensive out-of-hospital software platforms support the professionals and caregivers who are helping people stay healthy in the home or care setting of their choice.

And this certainly is a lot of people. At the last count, ResMed’s rapidly growing digital health ecosystem reached over 14 million cloud connectable medical devices. This helped increase the number of lives improved through its products to 121 million in 2020.

But it isn’t stopping there. The company still sees a significant runway for growth and is aiming to improve 250 million lives in out-of-hospital healthcare in 2025.

Analysts at Credit Suisse are positive on the company. The broker currently has an outperform rating and $37.00 price target on its shares.

Should you invest $1,000 in ResMed right now?

Before you consider ResMed, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and ResMed wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended ResMed Inc. 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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