Thankfully for investors, the Australian share market is home to a good number of high quality blue chip shares to choose from.
Two blue chip ASX 200 shares that could be worth considering as additions to your portfolio right now are listed below. Here's what you need to know about them:
BHP Group Ltd (ASX: BHP)
The first blue chip ASX 200 share to look at is BHP. The Big Australian is one of the world's largest miners and owns a diverse portfolio of world class, low cost operations across the globe. Thanks to favourable prices for many of the commodities it produces, BHP appears well-placed to generate significant free cash flow again in FY 2022. This is despite the recent pullback in iron ore prices. This could make the recent weakness in the BHP share price a buying opportunity for investors.
The team at Macquarie certainly believe this to be the case. The broker currently has an outperform rating and $52.00 price target on the miner's shares. Macquarie also expects BHP's free cash flow generation to be strong enough to support a 10% dividend yield in FY 2022 at the current share price.
National Australia Bank Ltd (ASX: NAB)
Another blue chip ASX 200 share that is rated highly is NAB. While the banking sector has fallen out of favour with investors following the recent bout of results releases, many analysts are remaining positive on NAB. This is due to the progress of its cost management initiatives and its strong position in business/commercial banking.
Goldman Sachs is one of the more bullish brokers. It believes that NAB's cost management initiatives (which it notes are further progressed relative to peers) have freed up investment spend to be more directed towards customer experience. In addition, the broker likes NAB due to its position as the largest business bank. This is due to Goldman's belief that retail-focused banks will struggle with aggressive competition for mortgages.
All in all, NAB is the broker's top pick among the big four banks and has a conviction buy rating and $31.15 price target on its shares.
