- 1 Ten Blue Chips Shares for Australians
- 1.1 Blue Chip Share Types
- 1.2 Which Blue Chip Shares Are The Best to Buy in Australia in 2020
- 1.3 1. Westpac Banking Corp
- 1.4 2. Transurban Group
- 1.5 3. Scentre Group
- 1.6 4. Fortescue Metals Group Limited
- 1.7 5. REA Group Limited
- 1.8 6. Magellan Financial Group LTD
- 1.9 7. CSL Limited
- 1.10 8. Xero Limited
- 1.11 9. A2 Milk Company Limited
- 1.12 10. Charter Hall Group
- 1.13 Fun Fact
- 1.14 How do I buy blue chip stocks in Australia?
When you look at a tip sheet for stocks, you will find it has a large variety of blue-chip stocks. If you are new to the stock market industry you might ask what is a blue-chip stock. These are the most dominant and largest companies which hold up irrespective of a downturn in the Australian economy. This is what makes blue-chip shares attractive, they are stable. The stability comes from its maturity and duration in business and investors, for example, Minerva has a good idea of what to expect and understands it better.
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It is usually a company that is a household name. For example, Woolworths and the Commonwealth Bank in Australia or Apple in the United States. We know and you know as well that these are big names and that these giants are stable and therefore a safe investment. What we want to share with you today are the top companies that will perform well now and in 2020.
1. Westpac Banking Corp
Going according to the weekly economic reports, this giant in the banking industry believes that by February 2020 the cash rate will be sliced to 0.5%. recent comments and data performed by the Reserve Bank indicate that this is a forecast that will be true. This means that by 2020 the term deposits and savings accounts interest rates will be the lowest than ever before.
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2. Transurban Group
The Australian toll road giant showed a 26.3% revenue increase only from its ordinary activities. In addition, it announced a $700 million equity raising that will be used to purchase the remainder of M5 West. If you buy shares in 2020 it will equate to a 4.15 forward yield.
3. Scentre Group
Scentre owns Westfield properties in ANZ and reports indicate that 2020 will provide a massive distribution growth and deliver solid income. This group owns 7.5% of all Australia’s retail sales with an occupancy rate of 99.3%. this is indeed a very good blue-chip share to buy in 2020.
4. Fortescue Metals Group Limited
During 2019 this group has been the best performer with an 85% gain. The gain is due to the sharp rise in the price of iron ore due to supply issues in Brazil and Australia.
5. REA Group Limited
Looking at the local Australian market the best to buy in 2020 will be REA Group shares. This is due to the expected rebound in the 2020s housing market. It is estimated that the growth in the housing market will continue through 2019 and accelerate with the recovering house prices and listings growth will increase too.
6. Magellan Financial Group LTD
Throughout 2019 the blue-chip share price was an impressive performer. It had a gain of 77.2%.
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7. CSL Limited
CSL LIMITED (CSL) is a company within the Health Care sector, with healthcare, research and development and a growing aging population. Investing in health could be one of the winners for 2020. CSL have shown steady gains throughout 2019 starting the year at $195 and ending at $277. No one knows what 2020 holds could be anything from the cure to cancer to a pandemic.
8. Xero Limited
Since the beginning of 2019 for the last nine months, the share price climbed 48% higher. This cloud-based accounting software and business provider has caught the eye of many investors.
9. A2 Milk Company Limited
Since the beginning of 2019, the share prices have been rising by 38.2%. This is due to the increasing demand from china for fresh milk and infant formula. It is expected to continue to rise.
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10. Charter Hall Group
This is another excellent and recommended blue-chip share to invest in as its share price stormed to a 405 higher rate since the start of 2019. It continues to rise and grow stronger and it is expected to boom throughout and in 2020 the year to buy your blue-chip shares.
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This article provides only general, and not personalised financial advice, and has not taken your circumstances into account. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. Australia Unwrapped does not guarantee the performance of or returns on any investment. This article should be enjoyed only for informational and entertainment purposes.
How do I buy blue chip stocks in Australia?
All 20 companies also make up the S&P/ASX 200 which measures the performance of the largest 200 companies listed on the ASX by market value. Investors can purchase blue chip shares directly using a broker or through exchange traded funds (ETFs) or unlisted managed funds.