Here are 2 Blue Chip Stocks to Watch for the Long Term

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Summary

  • Blue chip stocks can prove to be great investments during uncertain times and can be terrific additions to investor portfolio.
  • Holding a high market capitalisation, Westpac Banking Group has constantly seen gains in the stock market and has paid dividends.
  • CSL has gained considerably over the previous year, backed by vaccine-related developments.

Blue chip stocks are among the investors’ favourites when it comes to investing for the long run. These stocks are usually issued by large-cap companies with a strong foothold on the market.

It is a good move to include certain blue chip stocks into one’s portfolio for the sake of being secure and far-sighted.

Must Read: 5 ASX blue chip shares for March 2021

In that backdrop, let us discuss two blue chip stocks listed on the ASX:

Westpac Banking Corporation (asx:wbc)

Financial giant Westpac Banking Corporation (asx:wbc) has been a constant gainer in the stock market. During the previous week, the banking sector saw its share prices reaching their highest in over a year. At a share price high of AUD 25.28, Westpac was one of the most sought-after stocks of 2021.   

The bank is one of the oldest financial institutions in Australia and has emerged from the pandemic-related slowdown with strong financial figures. The company released its financial results for the December 2020 quarter in late-February 2021.

Westpac reported statutory net profit of AUD 1.7 billion during 1Q21 or December 2020 quarter. The bank’s cash earnings were AUD 1.97 billion, an increase of 54% over 2H20 quarterly average. Additionally, Westpac was able to raise net interest margin by 3bps to 2.06% and its core earnings went up 28%.  

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This strong start into the year has been a testament of the bank’s increasingly profitable performance despite the global slowdown. The quarter alone brought in better financial results than the average results of the second half of 2020.

With strong financials and a robust balance sheet, Westpac remains well placed to assist consumers and support Australian recovery. The company’s share prices have seen an almost 50% increase over the last 6 months. The YTD performance of Westpac shares has also been promising as prices rose from AUD 19.63 at the beginning of the year to AUD 24.54 at the time of writing.  

Good Watch: Why blue chips are an obvious choice for long-term investors?

CSL Limited (ASX:CSL)

One of the largest blue-chip players on the ASX, CSL Limited (ASX:CSL) has made a name for itself as a leading global biotechnology company. The firm was actively involved in the vaccine developments, thus landing a firm spot in the share market.  

The company’s earnings during the first half of FY21 ended 31 December 2020 have been impressive. Net profit after tax stood at AUD 1.8 billion, an increase of 44% over previous corresponding period. The company announced an interim dividend of USD 1.04 per share, which was higher by 9% over pcp. Earnings per share also rose 44% to AUD 3.98.

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CSL was able to bring in profits due to solid growth in the immunoglobulin portfolio and successful transition to own distribution model in China. The company remained resilient with the help of its diversified portfolio.  

CSL’s shares are trading at AUD 253.86 per share, an uptick of 0.3% over the last week. However, the current share price remains lower than the company’s performance throughout the last quarter of 2020.  

Also Read: Top 10 ASX blue chip stocks to watch out in 2021


 


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