Are you looking to add some blue chip shares to your portfolio in FY 2021? If you are, then I think the ones listed below could be top options.
I believe all three have the potential to not just generate solid returns over the new financial year, but also over the rest of the 2020s. Here’s why I would buy these ASX blue chip shares today:
CSL Limited (ASX: CSL)
I think CSL is one of the best blue chip ASX shares to buy right now. This is because I’m confident the biotherapeutics giant is well-placed to deliver solid earnings growth over the 2020s thanks to its leading therapies, growing plasma collection network, and its burgeoning research and development (R&D) pipeline. This pipeline contains a number of therapies (some of which have just been acquired) that have the potential to generate billions of dollars in sales over the next decade if their trials are successful.
REA Group Limited (ASX: REA)
Another blue chip share to consider buying is this property listings company. I believe it is well-positioned to deliver strong long term earnings growth thanks to its market-leading position and the strength of its business model. I was particularly impressed during the third quarter when REA Group still managed to grow its earnings despite a 7% drop in listings volumes. And while trading conditions are likely to remain challenging in the near term, I expect its earnings growth to accelerate once they ease.
SEEK Limited (ASX: SEK)
A final blue chip share to consider buying is SEEK. I believe the job listings giant can grow materially in the future thanks largely to its growing Zhaopin business in China. Given how this business has such a massive opportunity in a very lucrative market, I believe it will be the key driver of growth over the next decade and beyond. This should be supported by modest growth from its ANZ business, which continues to dominate the local market.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
More reading
- ASX 200 stocks to watch for FY2021
- Up nearly 33% in 12 months. Can the CSL share price climb higher?
- Top ASX Stock Picks for July 2020
- Why I would buy and hold CSL and this quality ASX 200 share
- The top 10 performing ASX shares over the past year
James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended REA Group Limited and SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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