If you’re interested in bolstering your portfolio with some blue chip shares, then I would suggest you consider the four listed below.

Here’s why I think they are quality options for blue chip investors:

BHP Group Ltd (ASX: BHP)

I believe that BHP would be a great blue chip option for investors. I think the Big Australian is the standout option in the resources sector thanks to its world class, low cost, and diverse operations and the strong free cash flows they generate.

Commonwealth Bank of Australia (ASX: CBA)

With Commonwealth Bank’s shares down 35% from their 52-week high, I think now could be an opportune time to invest. Especially given how the banking giant appears to have got all the bad news out of the way now following its third quarter update this week. And while trading conditions remain tough, I believe things will improve in 2021 and a return to growth could follow soon after.

Telstra Corporation Ltd (ASX: TLS)

Another company which I believe isn’t far off a return to growth is Telstra. Times have been hard for the telco giant, but things are starting to look positive now. This is due to its T22 strategy, the easing of the NBN rollout headwinds, increasing data consumption, and the arrival of 5G internet. Another positive is that its free cash flows appear sufficient to support its current dividends. This could mean the cuts are over.

Woolworths Limited (ASX: WOW)

A final blue chip to consider buying is this retail conglomerate. I think its strong brands, entrenched customer base, and non-discretionary nature makes for a very defensive business model. This should ensure that it continues growing its earnings and dividends over the next decade no matter what happens in the economy post-pandemic.

More reading

• Goldman Sachs names 5 reasons iron ore prices won’t crash
• Looking for dividend income? Try these 3 ASX shares
• Leading broker names CBA shares as a sell
• Top brokers name 3 ASX shares to sell right now
• Why I’d buy and hold Telstra shares for a decade

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Woolworths 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.

The post 4 top ASX 200 shares for blue chip investors appeared first on Motley Fool Australia.

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The Stockland Corporation Ltd (ASX: SGP) share price has slumped 41.34% lower in 2020 and is underperforming the S&P/ASX 200 Index (ASX: XJO) – but is it in the buy zone yet?

Why the Stockland share price has been hammered

Let’s start with what Stockland actually does. The group is a real estate investment trust (REIT) that invests in a large portfolio of commercial and residential property. In fact, Stockland’s portfolio spans residential, retail, workplace and logistics, and retirement living villages.

On the surface, the Stockland share price looks to be a bargain. A diversified real estate manager with $7 billion in assets that are trading 40% lower this year – what’s not to like?

But these aren’t normal times and investors have been spooked. Specifically, it’s quite hard to value real estate assets right now. COVID-19 restrictions have reduced demand in the retail and office sectors. That could mean fewer tenants and/or lower rent in the future which lowers asset values.

These valuation questions and hit to earnings have rocked the Stockland share price hard this year. But, state and federal governments are slowly easing restrictions, so could Stockland be undervalued right now?

Is now a good time to buy the ASX REIT?

Now, just because an ASX share has fallen lower does not necessarily make it a buy. On the other hand, a long-term investor should be able to see through the day-to-day or month-to-month noise.

The real question is whether or not the Stockland share price is appropriately valued. Do the current conditions make the Aussie REIT worth less in the future? My answer is probably.

It’s true that rents will take a long time to recover. There’s pressure right across the economy, including residential real estate with high unemployment testing asset quality.

On the other hand, I think the Stockland share price will bounce back. Stockland is a strong ASX dividend share that is currently yielding 10.17%. Of course, this may well be slashed due to soft earnings and being artificially high from the share price declines. However, I believe we’ll see more shoppers back in retail centres and continued demand for real estate assets.

So, while the Stockland share price may be worth less, I don’t think it’s worth 40% less. That means the current $2.71 per share valuation could be a steal if you’re investing for the long-term.

More reading

• ASX 200 drops 1.7%, Xero reports a profit
• ASX fundie says ASX 200 was more volatile in March than during the GFC
• This ASX growth share has rocketed 150% higher since March. Is it too late to invest?
• Why I’d buy and hold Telstra shares for a decade
• How to invest $1,000 like Warren Buffett today

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

The post Is this ASX 200 REIT a bargain right now? appeared first on Motley Fool Australia.

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