If you’re looking to add a few blue chip ASX shares to your portfolio this month, then the two listed below could be good options.

I believe these blue chip ASX shares have the potential to provide strong returns for investors over the next few years. Here’s why I would buy them in June:

CSL Limited (ASX: CSL)

The first ASX blue chip share to consider buying is this leading biotherapeutics company. Its shares were surprisingly out of form in May and are now trading around 17% lower than their 52-week high. I think this is a buying opportunity for investors that have been wanting to get a piece of the company.

And while there is a danger that the pandemic could have impacted its plasma collections during lockdowns, I believe higher unemployment will support collections once the crisis passes. Outside this, I believe its long term outlook remains very positive. This is thanks to the strong demand for immunoglobulin products, its growing Seqirus vaccine business, and its burgeoning research and development pipeline. All in all, I believe CSL is a blue chip to own for the long term.

Telstra Corporation Ltd (ASX: TLS)

I think Telstra is another great blue chip ASX share to own right now. After several years of struggles, the telco giant appears close to returning to growth once again. This is thanks to a combination of its T22 strategy, rational competiton, and the easing of the NBN headwind.

In fact, if it had not been for the NBN headwind, Telstra’s operating earnings would have been up on the prior corresponding period during the first half. In light of this and the current free cash flows it is generating, I believe its dividend cuts are over and 16 cents per share is the bottom. This equates to an attractive fully franked yield of almost 5%.

More reading

• In your 50s? Here are the 2 best ASX 200 shares to buy now
• 5 winning ASX dividend shares to buy in June
• Why Austal, CSL, Fortescue, & Star shares are charging higher today
• 5 ASX 200 winners and 3 losers from last week
• ASX 200 Weekly Wrap: Surging bank shares push ASX toward 6,000

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Telstra 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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S&P/ASX 200 Index (ASX: XJO) investors in their 50s are likely starting to think about retirement. The makeup of your investment portfolio is an important consideration. You may want to purchase more dividend-paying shares, as well as larger more stable businesses. Further, diversification is more important than ever to preserve capital.

Investors in their 50s

As investors we’re a motley crew. We all have motley goals, motley resources and motley risk appetite. Because of this, it is important to understand your own personal circumstances and invest accordingly. The below ASX stocks will be fantastic options for most investors in their 50s, but not for all. 

2 best ASX 200 shares to buy now

CSL Limited (ASX: CSL)

The largest company in the ASX 200 is a compounding machine! Over the last 20 years CSL has provided investors with a mega 20% annualised total return. The company’s performance has been even better in recent times, returning more than 25% per annum in total returns over 5 and 10 years.

After seeing the CSL share price fall more than 10% in May, I think now provides a nice entry point for new ASX 200 investors. Most of the drop can be attributed to profit taking and concerns over plasma collection issues resulting from COVID-19.

Despite its vast size, CSL should continue to grow well in the future. The stock price may not appreciate as fast as in the past, but I believe that CSL can provide robust market outperformance with less volatility.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Most people earn their income in Australia, have their savings in Australia and invest in Australia. Australia is the lucky country, but I think ASIA is a great option for ASX 200 investors in their 50s because of its diversification.

This ETF is a great way to diversify geographically into one of the fastest growing economies in the world. Not only that, it provides access to the technology sector, which is underweight in the ASX. 

It can often be hard to pick the winner in new technologies. Investment trends such as e-commerce and cloud computing have enormous addressable markets. Because of this, there is likely to be more than one winner in a region. As a market capitalisation weighted ETF, you gain more and more exposure to the businesses winning in these trends over time.

Some of the largest holdings include Alibaba Group and Tencent.

Foolish takeaway

Your 50s is a great time to start diversifying your portfolio and structuring it towards your income needs. Shares should make up part of a well balanced portfolio of multiple investment classes.

More reading

• 3 ASX 200 tech shares to buy and hold beyond 2025
• Why Woolworths shares are offering a rare buying opportunity today
• Why I would buy these ASX 200 blue chip shares in June
• These ASX shares are set to get a big boost from the next big government stimulus
• These 5 ASX 200 shares were last week’s biggest winners

Lloyd Prout owns shares in Betashares Asia Technology Tigers Ltd and expresses his own opinions. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. 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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The integrated chip came about largely due to the first Apollo moon mission. The enabler of all of today’s advanced technologies. The SpaceX launch on the weekend ushered in a new era of space exploration, with the US Space Force on one side and private industry squarely on the other. 

I believe one of the companies I have been watching for a while is likely to benefit greatly from any increased activity in space exploration.

A SpaceX style startup

Since 1983, Electro Optic Systems Hldg Ltd (ASX: EOS) has quietly gone about building high tech solutions to problems most of us are unaware of. It has an international presence across Australia, Singapore, the United States, the United Arab Emirates and Germany. It has also been in a strategic alliance with NASDAQ-listed defence giant Northrop Grumman.

In my opinion, the SpaceX rocket could not have docked with the international space station without Electro Optic. It is developing the technology to help with over 500,000 pieces of space debris travelling at around 30,000km per hour. This represents a serious threat to satellites, the international space station and more. 

In this area, Electro Optic has an Australian-based space situational awareness (SSA) network. This monitors and tracks orbiting space-based objects such as satellites and debris using ground-based radar and optical stations. 

That we have a company like this astounded me.

A strong defence company

As with Austal Limited (ASX: ASB), Electro Optic also provides technology and equipment to the defence markets. In this area, it develops a range of remote weapons systems for use on tactical vehicles. Electro Optic offers battle-proven technology and world-leading counter-drone technology. This has been enabled by its laser rangefinder technology. 

A well-managed company

Companies like SpaceX are massive growth engines. Amazon.com is another such example. Growth engines are massively unprofitable until the day they are. Then they are money-making factories.

Electro Optic, on the other hand, has always managed a very tight ship in my opinion. Over the past 10 years, it has grown its sales an average of 18% every year. In fact, it has managed to nearly double its sales in each of the past 3 years.

Foolish takeaway

In my opinion, the SpaceX launch and the US President announcement of Space Force, combined with heightened international tensions, are sure to increase the sales for Electro Optic in the years to come. The company has built a foundation based on excellent performance and advanced technology.

Electro Optic shares are currently trading at a price-to-earnings ratio higher than their 8-year average. However, I still believe this company deserves a place on your watchlist.

More reading

• Grow your wealth with these exciting ASX mid cap shares
• These mid cap ASX shares could grow into large caps in the future
• These ASX shares could make you a millionaire in 2030

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Daryl Mather owns shares of Austal Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Amazon. 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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