Why I'd buy CBA and these ASX 200 shares in March

After reviewing half-year results, these three ASX 200 shares strengthened my conviction.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

March is often when the dust settles after reporting season. The headlines fade, brokers update their models, and investors start asking a simpler question: which businesses actually delivered?

After reviewing recent half-year results, there are three ASX 200 names I would be comfortable buying this month. They operate in different sectors, but each showed something in their latest numbers that reinforces my confidence.

Woman with an amazed expression has her hands and arms out with a laptop in front of her.

Image source: Getty Images

Commonwealth Bank of Australia (ASX: CBA)

I'd buy CBA in March because it continues to demonstrate balance.

Yes, margins were slightly lower in the half as home lending competition remained intense. But earnings still grew and pre-provision profit lifted. More importantly to me, credit quality improved. Loan impairment expense declined and home loan arrears fell during the half. That matters.

When a bank can grow earnings while maintaining strong capital, improving credit quality, and increasing its dividend, I see that as confirmation of franchise strength.

CBA's CET1 ratio remains comfortably above regulatory minimums, and it again increased its interim dividend to $2.35 per share, fully franked. I believe that combination of earnings resilience, capital strength, and shareholder returns supports owning it even after a rally.

I'm not buying it for explosive upside. I'm buying it because it continues to prove it can deliver through different parts of the cycle.

Telstra Group Ltd (ASX: TLS)

Telstra's result reinforced something I already believed: this is no longer just a defensive telco, it's a business executing a clear strategy.

Mobiles continued to grow, with higher ARPU and customer momentum driving earnings in that segment. Across the Group, underlying EBITDA lifted and operating expenses fell. That positive operating leverage tells me management is controlling what it can control.

What also stood out was capital management. The interim dividend was increased to 10.5 cents per share, and the on-market buy-back was expanded to up to $1.25 billion. That doesn't happen unless the board has confidence in cash generation and balance sheet strength.

For me, Telstra is attractive in March because it is combining earnings growth, cost discipline, and shareholder returns. It is not dependent on outlandish assumptions. It is executing.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is the one I would buy for quality.

The half-year result showed profit growth of over 9%, supported by strong contributions from Bunnings, Kmart Group, and WesCEF. What I found particularly encouraging was that Bunnings delivered higher sales across all product categories and segments, even in a subdued residential construction environment.

Kmart Group also continued to drive earnings through productivity and value positioning. That reinforces my view that its everyday low-price model has structural strength.

The lithium contribution from WesCEF improved as pricing strengthened later in the half, adding another layer of optionality to the portfolio.

On top of that, the interim dividend was lifted again. For a diversified industrial group navigating cost pressures and uneven consumer demand, that signals confidence.

I like businesses that can grow profit in a mixed environment. Wesfarmers just did.

Foolish takeaway

I'm not recommending these shares for March because they beat expectations. I'm recommending them because their latest results confirmed what I already believed.

CBA remains the highest-quality major bank in Australia, Telstra is delivering earnings growth with disciplined capital management, and Wesfarmers continues to compound value across multiple divisions.

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Wesfarmers. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Blue Chip Shares

Person handing out $50 notes, symbolising ex-dividend date.
Blue Chip Shares

2 ASX blue-chip shares offering big dividend yields

These large businesses are giving investors large passive income.

Read more »

Two female executives looking at a clipboard together.
Blue Chip Shares

Where I'd invest $2,000 in ASX 200 shares

I would look for companies with strong market positions, long-term relevance, and management teams that know how to reinvest.

Read more »

Two smiling work colleagues discuss an investment at their office.
Blue Chip Shares

Which Aussie blue-chip stock is the best performer so far in 2026?

Where have the winners been in 2026?

Read more »

Happy work colleagues give each other a fist pump.
Blue Chip Shares

2 of the best ASX 200 blue-chip shares I'd buy in June

I like these businesses because they already have scale but still have ways to keep growing.

Read more »

Young woman thinking with laptop open.
Blue Chip Shares

If you invested $10,000 in CSL shares 10 years ago, here's what they would be worth today

Will the next 10 years tell a different story?

Read more »

Two young African mine workers wearing protective wear are discussing coal quality while on site at a coal mine.
Blue Chip Shares

Are Rio Tinto or BHP shares a better buy right now?

Can these blue-chips keep rising?

Read more »

A man raises his reading glasses in a look of surprise.
Blue Chip Shares

Bell Potter says this popular ASX 200 stock could deliver a 40% return

The broker is tipping major upside and a good yield.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Blue Chip Shares

2 ASX blue-chip shares offering big dividend yields

These large businesses are providing investors a lot of passive income.

Read more »