If I had $3,000 to invest in ASX blue-chip shares, I'd go for businesses with strong operations and a good long-term outlook.
I like companies that have a good market position and are able to keep expanding their footprint.
After looking at the biggest companies on the ASX, these two are among my favourites, along with Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS).
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Macquarie Group Ltd (ASX: MQG)
The business has four main segments: asset management, banking and financial services (BFS), commodities and global markets (CGM) and investment banking.
Macquarie generates around two-thirds of its earnings outside of the local economy, which implies the business has impressive geographic diversification.
The ASX blue-chip share has the flexibility to invest and expand in any division, wherever it sees opportunities across the world. That's a big reason why, in my opinion, the Macquarie share price has been able to rise around 50% in the past five years.
While the short-term may not see strong operating profit growth, I think the business has a good long-term outlook. While the dividend yield isn't huge, it can provide a useful bonus.
According to the estimates on Commsec, the Macquarie share price is valued at 17 times FY25's estimated earnings and a partially franked dividend yield of 3.5%.
Coles Group Ltd (ASX: COL)
Coles is one of the largest supermarket businesses in Australia. We all need food, and Coles has a strong market position, including defensive earnings in my opinion.
Australia's ongoing population growth is a useful boost for the ASX blue-chip share, as it can lead to more consumers buying from Coles.
The FY24 second half stated strongly – in the first eight weeks of the third quarter, supermarket revenue was up 4.9%, underpinned by volume growth. This growth was stronger than what Woolworths Group Ltd (ASX: WOW) achieved.
While expensive, I like that the company is investing heavily in advanced, automated warehouses which can help decrease operating costs and improve efficiencies once they're all fully operational.
Long-term profit growth combined with a good dividend yield could be a winning combination for this ASX blue-chip share.
According to the estimates on Commsec, the Coles share price is valued at 20 times FY25's estimated earnings.
