Blue chip shares are among the most popular type of shares for Australian investors to buy. But with so many to choose from, it can be hard to decide which ones to buy ahead of others.

Three top blue chip ASX shares that I think would be good options in August are listed below:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Domino’s Pizza is a blue chip which I think could be a great long term option. Over the last decade Domino’s has grown its earnings at an above-average rate, leading to strong returns for its shareholders. The good news is that I believe it could do the same over the next ten years. This is thanks to its strong brand and management’s bold sales and expansion targets. In respect to the latter, Domino’s is aiming to increase its store network by upwards of 9% per annum over the next five years.

ResMed Inc. (ASX: RMD)

Another blue chip to buy is ResMed. I think the sleep treatment-focused medical device company is a great option thanks to its positive outlook due to the proliferation of obstructive sleep apnoea (OSA). Management estimates that just 20% of OSA sufferers have been diagnosed with the condition at this point. But given the growing education of the sleep disorder, I expect more and more sufferers to be diagnosed in the coming years. And given the quality of its masks and software, I believe ResMed is well-placed to benefit from this.

SEEK Limited (ASX: SEK)

A final blue chip share to consider buying is SEEK. I think the job listings company has a very positive long term outlook and could be a market beater over the 2020s. This is due to its domination of the ANZ market and the growth potential of its China-based Zhaopin business. Given Zhaopin’s strong position in a very lucrative market, I believe it has the potential to support strong overall earnings growth over the next decade.

More reading

• Does the second wave of COVID-19 make these ASX 200 healthcare shares a buy?
• All Technology Index celebrates 6 months with stunning outperformance
• 3 fantastic ASX growth shares to buy in August
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• Buy and hold Cochlear and these ASX shares for strong long term returns

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited, ResMed Inc., 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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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a positive note and recorded a solid gain. The benchmark index rose 0.35% to 6,044.2 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to rise again.

The ASX 200 looks set to push higher again on Tuesday. According to the latest SPI futures, the benchmark index is expected to open the day 29 points or 0.5% higher this morning. This follows a positive night of trade on Wall Street, which saw the Dow Jones climb 0.4%, the S&P 500 rise 0.75%, and the Nasdaq storm 1.7% higher.

Tech shares on watch.

Tech shares including Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) could be pushing notably higher today following a very positive night for their U.S. counterparts. The tech-heavy Nasdaq index jumped 1.7% overnight thanks to solid gains by the likes of Amazon and Apple. The two tech giants hit record highs on Monday. According to CNBC, market sentiment was given a boost by the coronavirus stimulus hopes and news that the U.S. government is allocating an additional US$472 million towards Moderna’s coronavirus vaccine research.

Oil prices push higher.

Energy producers including Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could be rise today after oil prices pushed higher. According to Bloomberg, the WTI crude oil price climbed 0.85% to US$41.64 a barrel and the Brent crude oil price rose 0.4% to US$43.52 a barrel.

Gold price hits record high.

Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch on Tuesday after the gold price hit a record high. According to CNBC, the spot gold price rose 2% to US$1,937.40 an ounce amid coronavirus worries and rising US- China tensions.

Credit Corp results.

The Credit Corp Group Limited (ASX: CCP) share price will be another one to watch this morning when it releases its full year results. Earlier this month the debt collector advised that it expects its net profit after tax (before one-offs) to be in the range of $75 million to $80 million in FY 2020.

More reading

• ASX 200 rises 0.3%, Perpetual reveals large US acquisition
• Is it too late to buy the outperforming Woolworths share price and Coles share price?
• How investors can make the most of all this uncertainty
• 3 Warren Buffett quotes to start the week off right
• Why these brokers are telling you to buy the crashing IAG share price today

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 and recommends Altium. The Motley Fool Australia owns shares of Appen Ltd. 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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Fortunately, in this low interest rate environment, there are a good number of ASX shares paying investors handsome dividends.

Here are three ASX dividend shares that I think income investors should buy right now to beat low rates:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to consider buying is this supermarket operator. I think Coles is well-positioned to grow its dividend at a consistently solid rate over the next decade. This is because of its positive growth outlook thanks to food inflation, its refreshed strategy, defensive earnings, and expansion opportunities. Based on the current Coles share price, I estimate that it offers a fully franked ~3.5% FY 2021 dividend.

Rural Funds Group (ASX: RFF)

A second dividend share to buy today is Rural Funds. It is a leading agriculture-focused property company with a collection of quality assets throughout Australia. I’m a big fan of Rural Funds due to its long term tenancies which have been structured to allow the company to consistently increase its distribution at a solid rate each year. For example, the earnings visibility this provides means the company has already provided its distribution guidance for FY 2021. It plans to pay shareholders a 11.28 cents per share distribution. Based on the current Rural Funds share price, this equates to a 5.6% yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A final option to consider is a dividend-focused exchange traded fund. As its name implies, the Vanguard Australian Shares High Yield ETF has a focus on high yield dividend shares. It provides investors with exposure to 62 of the highest yielding shares on the ASX through just a single investment. This includes the likes of Coles, the big four banks, and high-yielding miners and telcos. At present I estimate that its units offer a FY 2021 dividend yield of at least 4.4%.

More reading

• Is it too late to buy the outperforming Woolworths share price and Coles share price?
• Coles launches new collectables! Is the Coles share price a buy?
• These shares were the ASX 200’s biggest losers last week
• ASX 200 Weekly Wrap: ASX has week of high volatility
• Beat low interest rates on savings accounts with these ASX dividend shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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