Finding truly 'safe' stocks is a near-impossible task on the Australian markets, even amongst the bluest of blue-chip ASX shares. Even though a company may have rock-solid fundamentals, a defensive stream of earnings, and a rusted-on base of customers, the market can still punish its shares for no reason at all.
As such, we can never truly assume an ASX share, blue chip or not, is 'safe' when it is subject to the market's whims.
Saying that, I still believe there are ASX shares that are safer than others. These stocks are companies that I would (and in some cases do) hold with the presumption that you'll never have to sell. Here are three blue-chip ASX shares that I think fit that bill.
3 blue-chip ASX shares you can buy and hold forever
Telstra Group Ltd (ASX: TLS)
First up is blue-chip ASX telco stock Telstra. In the old days, Telstra was an indispensable part of the Australian economy as the nation's monopolistic supplier of telephony services. Today, Telstra's role has shifted, but this company is still the number one provider of telecommunication services in Australia, including both fixed-line internet connections and mobile services.
The Internet is an essential part of our professional and personal lives in the modern world. Most people would give up a lot of things before giving up their internet connection or mobile phone. That inherently makes Telstra a defensive ASX blue-chip share.
Telstra also happens to possess a very strong moat in the form of its network coverage, which is almost universally regarded as vastly superior to those of its competitors. This means that many of Telstra's customers simply cannot change providers easily.
All up, I think this makes Telstra a company you can comfortably buy and hold forever.
Coles Group Ltd (ASX: COL)
Next up, we have another famous ASX blue-chip stock in Coles Group. Coles, as most Australians would know, is a major supermarket operator in the country, running its eponymous grocery store chain as well as the Liquorland bottle shop chain.
I would recommend Coles as a buy-and-hold-forever stock for reasons similar to those of Telstra. Put simply, this company sells products, namely food and household essentials, that we can't help but buy. As long as Coles is a relatively cheap place to obtain these goods, I can't see any reason why its customer base won't keep coming back.
Right now, Coles is investing heavily in supply chains, automation, and other measures to ensure that this will continue.
Like Telstra, Coles pays a remarkably stable and lucrative dividend, which tends to come fully franked.
Transurban Group (ASX: TCL)
Our final ASX blue-chip stock I think is a safe lifetime investment is toll road operator Transurban. Transurban has a near-total lock on our nation's most important tolled roads. It owns more than a dozen in Sydney alone. When added to major arterial routes across Brisbane, Melbourne and North America, we have a formidable investment in my view.
Right now, the world is beginning to transition away from petroleum-powered cars and into hybrids and fully electric vehicles. The best thing about this trend is that it will have next-to-no impact on Transurban. Whether vehicles are petrol-powered or electric, they will have to pay for the right to use one of Tansurban's sometimes-unavoidable arterial routes.
With traffic volumes tied to overall population growth, I think Transurban is yet another ASX blue-chip stock that one can comfortably buy and hold forever today.
