There are a large number of blue chip ASX shares to choose from on the Australian share market.

So many, it can be hard to decide which ones to buy ahead of others.

To help narrow things down, I have picked out two blue chips which have been tipped as buys:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The first blue chip to consider is ANZ. Although the banks still have COVID headwinds and low interest rates to battle, trading conditions certainly are improving. This was evident in recent decisions to relax responsible lending rules and dividend restrictions.

So with the ANZ share price still trading materially lower than its previous highs, now could be an opportune time to make a patient investment.

Morgans certainly appears to believe this is the case. It has recently reiterated its add rating and lifted its price target on the company’s shares to $26.00.

The broker is also forecasting fully franked dividends of $1.27 per share in FY 2021 and $1.50 per share in FY 2022. Based on the current ANZ share price, this represents 5.5% and 6.5% dividend yields, respectively.

Another blue chip to look at is Cochlear. It is a leading medical device company with a portfolio of cochlear implantable devices and other hearing solutions.

It has been a very positive performer over the last decade and delivered consistently strong sales and profit growth. The good news is that Cochlear appears well-positioned to continue this trend over the next decade.

This is thanks to its strong market position, leading technology, and its exposure to the ageing populations tailwind. In respect to the latter, by 2050 there are forecast to be 1.5 billion people over the aged of 65. This will be almost triple the number of over 65s in 2010. 

Analysts at Macquarie are bullish on the company’s prospects and believe Cochlear is winning market share in the United States. They currently have an outperform rating and $241.00 price target on its shares.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.


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