Top 5 Blue Chip Stocks in Australia

According to the ASX 200 index, the index has returned an average annual return of around 9.5% over the last 10 years.

This article highlights 5 blue chip stocks in the Australian stock market in 2024, focusing on their stock code, index percentage, market cap, and revenue etc. These 5 blue chip stocks are part of the ASX 200 index, which represents the 200 largest companies listed on the Australian Securities Exchange. The performance of blue chip stocks in Australia over the last decade has been mixed.

What are Blue-Chip Stocks?

Blue chip stocks are shares of large, stable companies that have a proven track record of consistent earnings and growth. These companies are typically leaders in their respective industries and have a strong brand presence. The term "blue chip" refers to the highest-value poker chips in the game, which were traditionally colored blue.

The S&P/ASX 200 Index (XJO) is recognised as the investable benchmark for the Australian equity market, it addresses the needs of investment managers to benchmark against a portfolio characterised by sufficient size and liquidity. The S&P/ASX 200 is comprised of the S&P/ASX 100 plus an additional 100 stocks.

ASX Component Stocks

1. BHP Group Limited (ASX:BHP)

Market cap: A$ 239.14B

Index Weight: 10.95%

Dividend Yield TTM: 8.48%

5-year average dividend yield: 6.7%

Payout ratio: 90.26%

BHP Group Limited, a resources company, has a global presence with operations in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, and South America. Its mining activities are divided into three segments, namely Copper, Iron Ore, and Coal. The company is engaged in extracting copper, silver, zinc, molybdenum, uranium, gold, iron ore, metallurgical coal, and energy coal. It is also involved in nickel mining, smelting, and refining and potash development activities. It was founded in 1851 and has its headquarters in Melbourne, Australia.

2. Commonwealth Bank of Australia (ASX:CBA)

Market cap: A$ 173.95B

Index Weight: 8.03%

Dividend Yield TTM: 4.04%

5-year average dividend yield: 4.60%

Payout ratio: 66.68%

The Commonwealth Bank of Australia is a financial services provider that offers integrated services across Australia, New Zealand, and internationally. The company operates through four segments: Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand. It provides a range of financial products and services, including transaction, savings, foreign currency, and term deposit accounts, personal and business loans, credit cards, equipment finance, as well as home and car loans. Additionally, the company offers funds management, superannuation, and share broking products and services, as well as various insurance options such as car, health, life, income protection, and travel insurance. The Commonwealth Bank of Australia was established in 1911 and is headquartered in Sydney, Australia.

3. CSL Limited (ASX:CSL)

Market cap: A$ 125.08B

Index Weight: 6.58%

Dividend YieldTTM: 1.33%

5-year average dividend yield: 1.06%

Payout ratio: 51.57%

The CSL Behring segment primarily focuses on plasma therapies, which include plasma products and recombinants. This segment also carries out research on both plasma and non-plasma therapies. It receives license and royalty from the commercialization of intellectual property as well. On the other hand, the CSL Seqirus segment is involved in the manufacture and distribution of non-plasma biotherapeutic products. It also develops influenza-related products. CSL Limited was founded in 1916 and has its headquarters located in Parkville, Australia.

4. National Australia Bank Limited (ASX:NAB)

Market cap: A$ 87.43B

Index Weight: 3.53%

Dividend YieldTTM: 5.75%

5-year average dividend yield: 5.53%

Payout ratio: 66.58%

National Australia Bank Limited is a financial services provider that offers various services to individuals and businesses across Australia, New Zealand, and internationally. The company operates through several segments, including Business and Private Banking, Personal Banking, Corporate and Institutional Banking, New Zealand Banking, Corporate Functions and Others.

5. Westpac Banking Corporation (ASX:WBC)

Market cap: AUD$ 75.02B

Index Weight: 3.53%

Dividend YieldTTM: 6.26%

5-year average dividend yield: 5.55%

Payout ratio: 71.67%

Westpac Banking Corporation is a financial services provider that offers a range of banking and financial services across Australia, New Zealand, and internationally. The company provides various types of accounts, including savings, term deposits, business transactions, not-for-profit transactions, foreign currency, farm management deposits, project and retention trusts, and statutory trust accounts. Additionally, Westpac Banking Corporation offers various types of loans such as home, personal, business, and commercial loans.

The above information is based on public market data as of 24 November 2023. It is not financial advice, recommendation or solicitation for the purchase or sale of financial products.

General Indicator Insight - PB, PE, PS...

Fundamental investors generally base their investment decisions on the intrinsic value of a stock. They tend to believe that when investing in a stock that is perceived to be undervalued, they are more likely to make a potential profit. Conversely, they believe that buying an 'overvalued' stock poses a higher risk of loss. The company's earnings report can provide insight into a stock's value, and fundamental investors commonly consider the following four methods.

PE, PB, PS, PEG

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