April 2022 could be a good month to jump on some of the best ASX blue chip shares.
Blue chips are typically able to provide more stability than smaller businesses. The good ones are usually leaders in their industry with useful growth prospects.
I really like the look of these two for the long-term:
Brickworks Limited (ASX: BKW)
Brickworks is the biggest brickmaker in Australia with a number of brands, though Austral Bricks could be the most recognisable.
It has a number of divisions that are among the biggest in Australia such as Bristle Roofing, Austral Precast and Austral Masonry.
One of the things that I really like about Brickworks is its large holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares which provides stability as well as growing dividends and increasing capital value over time for Brickworks.
Brickworks’ property is also a very compelling part of the business.
It owns 50% of a property trust where quality industrial properties are built on excess Brickworks land. E-commerce and logistics facilities are in huge demand right now, helping rental potential and property values.
An interesting development by the company has been the idea to set up another property trust. This time, it will own some of the operating buildings of Brickworks and perhaps eventually be turned into other industrial properties. The great thing about this move is that it allows Brickworks to capitalise on the high value of its properties. It’s going to book a pre-tax profit by this move of between $260 million to $280 million, with $90 million recognised on completion of the transaction.
Wesfarmers Ltd (ASX: WES)
Wesfarmers is one of my favourite blue chip ASX shares.
There are two main reasons I like it.
Firstly, I appreciate the flexible operating nature of the business. It can choose to buy and sell different businesses for the portfolio.
I think that’s very useful, because it allows the business to remain relevant to shift its holdings to sectors that have more long-term growth potential. For example, in the fairly recent past Wesfarmers sold its coal mining operations.
It’s able to diversify its operations. The latest acquisition was Australian Pharmaceutical Industries Ltd (ASX: API), which will be the start of a new health and beauty segment.
I also really like the existing businesses of Wesfarmers. The upcoming lithium mine of Mt Holland could come at the perfect time to capitalise on the great lithium prices.
Bunnings may be the best retail business in Australia. Catch is a very promising online retailer. Officeworks is a clear category leader for office supplies.
Final thoughts on these ASX blue chip shares
I think both of these ASX blue chip shares are very good and have plenty of growth potential.
As a bonus, both of these businesses are known for their reliable and solid dividend payments. They’re good ASX dividend shares in my opinion.
