Best blue chips to buy?

[Fangblade1]

I hate the 4.25% interest you get from term deposits now days.. I want something better anything higher then that would be awesome for now.. Can anyone recommend me some company's that are blue chip. I am still a beginner so I rather play safe.


Anyone have blue chips and can someone tell me in average how much they pay out comparing of course to the 4.25% that the banks give. Is it any better?

 

[Joe Blow]

Would just like to remind everyone that any stock nominated as a "best blue chip to buy" cannot be presented as a recommendation, otherwise I will have to close this thread.

If you believe a blue chip is undervalued and currently represents good value, then you must make a case for it in this thread. Posts that just contain a company name or ASX code with no accompanying analysis or explanation will be removed from the thread.

 

[Fangblade1]

Would just like to remind everyone that any stock nominated as a "best blue chip to buy" cannot be presented as a recommendation, otherwise I will have to close this thread.

If you believe a blue chip is undervalued and currently represents good value, then you must make a case for it in this thread. Posts that just contain a company name or ASX code with no accompanying analysis or explanation will be removed from the thread.

Sorry about that Admin.

 

[wadesansom]

I hate the 4.25% interest you get from term deposits now days.. I want something better anything higher then that would be awesome for now.. Can anyone recommend me some company's that are blue chip. I am still a beginner so I rather play safe.


Anyone have blue chips and can someone tell me in average how much they pay out comparing of course to the 4.25% that the banks give. Is it any better?

bump! :1zhelp:

 

[CanOz]

Why don't you do some research of your own? that way when it goes pear shaped you'll know who to blame...

CanOz

 

[wadesansom]

Why don't you do some research of your own? that way when it goes pear shaped you'll know who to blame...

CanOz

true, but some of us may feel our reseach would be quite inept - the recommendations may not be taken as gospel; more of a place to start looking.

"why have a dog and bark yourself?" - gandalf.

:

 

[Joe Blow]

Why don't you do some research of your own? that way when it goes pear shaped you'll know who to blame...

I think I may make it a rule that those starting threads such as this one need to kick the thread off by nominating a stock of their own, complete with some research or analysis. That way, it doesn't have to be everybody else that does the hard work.

Also, I would like to make it very clear once again that if people in this thread start asking for or referring to "recommendations" I will close the thread immediately. It is illegal for those here at ASF to provide financial advice to others, so do not ask for it and do not offer to provide it to others.

 

[ROE]

I hate the 4.25% interest you get from term deposits now days.. I want something better anything higher then that would be awesome for now.. Can anyone recommend me some company's that are blue chip. I am still a beginner so I rather play safe.


Anyone have blue chips and can someone tell me in average how much they pay out comparing of course to the 4.25% that the banks give. Is it any better?

Blue chip stock doesn't really mean much without other information....they are just large market cap stocks...
the word blue chip came from poker where the blue chip is the highest value chip... = large market cap for stock

just because they are large it doesn't mean they are safe...some smaller companies are safer than the larger one.
so be careful when people recommend blue chip...you got to know what kind of chip it is ...does it has holes in it?
does it operate in industry that vulnerable for wild price fluctuation and intense price competition etc...

and on to anything safer than 4.25% bank deposit...not many asset because they all have various risk associated with it....... I hope you know Shares is a very high risk asset, there is absolutely no guarantee it pay you more than 4.25% in dividend or your capital wont go down by 5%, 10%, 50% or 100%....

As a share holder you get a share of profit but has no entitlement to anything else if the company is in trouble...all other creditors comes before you and you last in line and when it's your turn it usually mean you get zero.

Also buying shares expose you to market risk (price up and down dependent on daily news that affect the company) and system risk (Fraud, bad management, manipulation etc..)

Having said all that, shares do and often reward you with very good return (dividend and capital appreciation)
if you are in the right business ....

no one can recommend what can buy but there are plenty of threads you can read on here and you can work it out which one you want to invest in after you accept the risk I mentioned above... Below are a list of large cap companies you can research and work out what price you should pay for them....and I think they are financially sound...not a recommendation...

ANN (Gloves and Condoms and safety gears)
BHP (Diversify miners)
BXB (Pallets and Logistic)
CBA (Retail Banking)
WOW (Everyday Food, Alcohol, Pokies, hardware)
WES (Everyday Food, Alcohol, Hardware,Officeworks)
WDC (Operator and Owner of Westfield mall Wordwide (ex Australia and NZ)
TLS (Telecom and Internet Provider)
QBE (Multi-national insurer)

 

[h0wi33]

First time posting, so please be kind..

I would make a case for Telstra (TLS). Dividend is pretty good (28c pa) fully franked. That'll give you around 5.6% yield.

Value wise, I see them going strong for the next couple of years. Telstra is still seen as the leader of the pack. With the constant cash flow coming from NBN, competitors still lagging behind and strong plans for investment and restructuring, I can see growth in value in the future.

Risk: Now that they are losing their copper network, they pretty much have all their eggs in the wireless business. The problem is now Voda is starting to clean up their act and getting ready with LTE scheduled in Q3 this year. Optus is also not too far behind Telstra with solid market share and investment in new technologies. There is also a risk that NBN is getting delayed, which means the cash flow to Telstra will not be as smooth as originally planned.

 

[Fangblade1]

Why don't you do some research of your own? that way when it goes pear shaped you'll know who to blame...

CanOz

I wouldnt blame anymore. I asked because I want to know what people with a lot more experience then me in this area would go.

I am doing my own research as well, this is helping my research.

I don't know about anything else but asking stupid questions as a noob does teach a noob a lot later on.

 

[wadesansom]

I wouldnt blame anymore. I asked because I want to know what people with a lot more experience then me in this area would go.

I am doing my own research as well, this is helping my research.

I don't know about anything else but asking stupid questions as a noob does teach a noob a lot later on.

that it does. i will now go check out the list of stocks that were posted above in their respective threads, and if they seem to tickle my fancy - i may chose to invest in them.

the more noob questions you ask, the less noob you become.

i also was thinking of TLS for the same reasons, a thread worth checking out.

 

[CanOz]

I wouldnt blame anymore. I asked because I want to know what people with a lot more experience then me in this area would go.

I am doing my own research as well, this is helping my research.

I don't know about anything else but asking stupid questions as a noob does teach a noob a lot later on.

Yup, questions are good, just don't ask for recommendations. The site is a great resource for learning.

CanOz

 

[Fangblade1]

Yup, questions are good, just don't ask for recommendations. The site is a great resource for learning.

CanOz

In order to find blue chip shares, would I need to actually look through all the company's or is there a section where I can find all the blue chip company's?

 

[CanOz]

In order to find blue chip shares, would I need to actually look through all the company's or is there a section where I can find all the blue chip company's?

I'd start with Google, type in Australian Blue Chip Shares.

Then after that, I'd go directly to the company websites, download the latest annual report. Maybe even pick up a copy of the Fin Review tomorrow and have a breeze through the stock listing to see what their PE ratios are currently, what their dividend was.

That's if i gave a toss about their fundamentals and wanted to "invest", buy and hope...

Anyway, thats should give you a start. Now GO and RESEARCH.

CanOz

 

[Sharkman]

to use a quirky analogy that betrays my wargaming days from childhood - you might carry a 2d10+1 morningstar (for the non-geeks - that's 2 swings doing 1-10 damage each, plus one ) and a 4d5 longsword. both average 12 damage overall - but the damage profile is different. the morningstar is more prone to hitting extreme highs and extreme lows, whereas the longsword will do more reliable middling damage. you also carry a magic staff that shoots an icebolt for a guaranteed 10 damage and always 10 damage, but it only has a limited number of charges.

sticking money in the bank is like the icebolt. guaranteed return, but in the long run, below the average performance of the other alternatives. and you can't keep doing it in my opinion (just like the limited uses of icebolt) because if you keep all your money in the bank for too long, eventually you get eaten up by inflation.

low beta/more stable stocks eg. WOW (this is not a recommendation - i am just pointing out an eg. of a low beta stock) is like the longsword. better returns than sticking it in the bank, but unlike sticking it in the bank, there is a chance of a subpar return.

high beta/volatile stocks eg. LEI (again not a recommendation - just giving an eg. of a high beta stock) is like the morningstar. gives you a (theoretically) better shot at a big gain, but also exposes you to potentially bigger losses. possibly even crippling ones if you haven't managed your risk properly.

so going back to adventuring - the attack you choose depends on the situation you're in. if you absolutely HAVE to take out the evil dark sorcerer NOW, before you and your buddies get horridly wilted or some other nasty fate, and you need to do a truckload of damage in one round, then take out your morningstar and hope for the best. if that dark sorcerer has already been injured down to 8 health by one of your buddies, it's your attack and you're the last one to act before the bad guy can counter, you'd be crazy not to burn one of your limited icebolts, even though both your martial weapons have a good chance of hitting for 8 or more, because if it doesn't, you're toasted!

but if you're facing a horde of puny goblins where each individual one will morale break and run away if you just nick it for a few points of damage in a round, you whip out your sword, to almost guarantee you'll break one every round and thus thin the crowd so you don't get overwhelmed by numbers. no need to burn your limited icebolts, even on the off chance you don't chase one away this turn and it hits you, no real harm done, until it happens a few times and you get low on health.

the whole point of that is, what you should choose to invest in is SITUATIONAL. if you absolutely cannot afford to lose any money at all for a given timeframe, you probably should leave it in the bank. if you're comfortable for the moment and can shoot for a better return, but you can still live comfortably if your investment goes moderately down in value, then low beta stocks may be more suitable. but if you have a bit of cash whereby if you lost most or even all of it, it wouldn't really affect your quality of life, and you can sleep at night even knowing that there is a possibility of that happening, then you might be more willing to take a big home run swing at something and go for the higher risk stuff.

i don't think there is a "best" stock. the best stock for my purposes may not be the best stock for yours. i might have gotten an unexpectedly nice bonus (as if - that hasn't happened since 2007! ) and i might be quite happy to punt it all on some volatile stuff, whereas you may not feel comfortable with that sort of risk. what you should invest in depends on your goal, risk appetite, tolerance for volatility, and your current financial situation. only YOU know what those truly are.

 

[Sharkman]

In order to find blue chip shares, would I need to actually look through all the company's or is there a section where I can find all the blue chip company's?

what is your definition of a blue chip? those with the largest market caps? if so, just go to http://www.asx200list.com/ - there's your list right there.

not sure that would be the best definition of a blue chip though...

 

[McLovin]

In order to find blue chip shares, would I need to actually look through all the company's or is there a section where I can find all the blue chip company's?

Mondays in the SMH (and I guess the Age) they have the top 150 companies by market cap.

You could just buy an index fund. Probably a relatively safer way of going about things than playing pin the tail on the blue chip.

 

[systematic]

With the term 'blue chip' most people seem to either mean "large companies" or they mean "safe" companies (low risk of going bust) or perhaps "quality" companies (whatever that means).

You need to come up with your own definition. Alan Hull has used Stock Doctor Star Stocks as his "blue chips". Some have used Martin Roth's Top Stocks. I think tech/a used something like a margin stock list for his tech trader experiment / plan.

It's really up to you to come up with something that makes sense for what you are doing. If you want large, safe, quality companies as your blue chip list (for example), you need to think about ways of defining those concepts (or find a service that defines those concepts in a way that agrees with you).

 

[Dona Ferentes]

With the term 'blue chip' most people seem to either mean "large companies" or they mean "safe" companies (low risk of going bust) or perhaps "quality" companies (whatever that means).

... And it could mean Companies that have been around for a while (and likely to continue to be)....

From post #8:

ANN (Gloves and Condoms and safety gear)
BHP (Diversify miners)
BXB (Pallets and Logistic)
CBA (Retail Banking)
WOW (Everyday Food, Alcohol, Pokies, hardware)
WES (Everyday Food, Alcohol, Hardware, Officeworks)
WDC (Operator and Owner of Westfield mall Wordwide (ex Australia and NZ)
TLS (Telecom and Internet Provider)
QBE (Multi-national insurer)

... 10 years later; a few on that list are gone, some are treading water, strategic acquisitions have enhanced a few as have disposals/ refocusing. My favourite ones and worthy of the title are:

• CSL close to $300,
• CBA nearing $110,
• BHP closing in on $50
• WES again nudging $50

@Joe Blow's posts at top of the thread need to be revisited

 

[divs4ever]

... And it could mean Companies that have been around for a while (and likely to continue to be)....

From post #8:

... 10 years later; a few on that list are gone, some are treading water, strategic acquisitions have enhanced a few as have disposals/ refocusing. My favourite ones and worthy of the title are:

• CSL close to $300,
• CBA nearing $110,
• BHP closing in on $50
• WES again nudging $50

@Joe Blow's posts at top of the thread need to be revisited

https://www.investopedia.com/terms/b/bluechipstock.asp ( according to Investopedia )

however a ( ASX-listed ) 'blue-chip' 10 years back , might not be so in 2023

my favs. on your list are WES and BHP ( in that order ) ( i hold both WES and BHP )

my best performing stock ( bought at my entry price ) still in the ASX to 20 ( XTL ) is MQG , so far the extra risk taken has rewarded