If you’re wanting to construct a balanced portfolio, owning a few ASX 200 shares could be a smart move.
But which ASX 200 shares should you buy? Two that could be in the buy zone are listed below:
Coles Group Ltd (ASX: COL)
The first ASX 200 share for investors to consider is Coles. It is one of the big two supermarket operators in the ANZ market. In addition to this, it has a number of complementary businesses such as its convenience stores, flybuys loyalty program, and Liquorland.
Due to the strength of these businesses and their positive long term outlooks, Coles has been tipped as an ASX share to buy. This is particularly the case for income investors due to its attractive yield and favourable dividend policy.
Morgans is positive on the company and is forecasting generous dividend payments in the coming years. Its analysts are expecting dividends per share of 61 cents in FY 2022 and 62 cents in FY 2022. Based on the current Coles share price of $17.03, this will mean fully franked yields of 3.6% and 3.65%, respectively, over the next two years.
Morgans has an add rating and $19.80 price target on its shares.
ResMed Inc. (ASX: RMD)
Another ASX 200 share to look at is ResMed. It is one of the world’s leading sleep treatment-focused medical device companies.
ResMed has been growing its revenue and earnings at a very strong rate over the last decade. This has been underpinned by its industry-leading products, growing software business, the increasing awareness of sleep disorders, and its investment in research and development (R&D).
Pleasingly, the company’s growth outlook remains very positive. This is thanks to its huge addressable market and the shift to home healthcare. The latter is being supported by its comprehensive out-of-hospital software platforms that allow people to stay healthy in the home or care setting of their choice.
Another positive is that one of its biggest rivals is currently battling with a major product recall. This is expected to allow ResMed to gain market share this year.
The team at Credit Suisse are very positive on the company. The broker currently has an outperform rating and $44.00 price target on its shares.