One thing the Australian share market isn’t short of is blue chip shares.
But with so many to choose from, it can be hard to decide which ones to buy.
To narrow things down, I have picked out two blue chip ASX 200 shares which I think would be great long term options for investors. Here they are:
Aristocrat Leisure Limited (ASX: ALL)
The first blue chip ASX 200 share to consider buying is Aristocrat Leisure. This gaming technology company’s shares have fallen heavily this year due to the negative impact of the pandemic on its core poker machine business. While this is disappointing, it should only be a short term headwind and demand is likely to recover strongly once the crisis passes.
In the meantime, lockdowns and casino closures are giving its digital (mobile) portfolio of games a major boost. This segment is offsetting much of the decline in the core business with material recurring revenues. Once trading conditions return to normal and both sides of the business are pulling together, I expect Aristocrat Leisure’s growth to accelerate again.
SEEK Limited (ASX: SEK)
Another blue chip ASX 200 share to consider buying is this job listings giant. Although current trading conditions are tough and its FY 2020 result is likely to underwhelm, I believe it is well worth looking beyond this and focusing on the future. A future which I continue to believe is very bright thanks to its underappreciated Zhaopin business in China.
During the first half Zhaopin contributed 47.8% of SEEK’s total revenue, making it the biggest contributor to its overall revenue by some distance. Given how this business has a massive opportunity in a very lucrative market, I believe it is likely to be the key driver of growth over the next decade and beyond. This should be supported by its ANZ business, which continues to dominate the local market.
Where to invest $1,000 right now
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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
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Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended 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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