Investing in ASX 200 (ASX: XJO) blue-chip shares can be one of the ‘safest’ ways to invest in the stock market.
Buying slices of two of the strongest businesses in Australia could give investors peace of mind, while gaining exposure to companies that are delivering long-term, steady growth.
Due to their size and industry, I’m not suggesting huge gains are likely with the following ASX 200 blue-chip shares, but I believe their future looks compelling.
Coles Group Ltd (ASX: COL)
Coles is a major supermarket business in Australia with its national network of stores. It also has a liquor division which includes Coles Liquor, First Choice Liquor Market, Liquorland and Vintage Cellars.
Despite a challenging economic environment for households, the company was able to report strong growth in the first quarter of FY26. Overall revenue increased 3.9% year on year, while supermarket revenue rose by 4.8%.
There were a couple of very pleasing growth figures reported by the supermarket segment in the FY26 first quarter – sales revenue excluding tobacco grew 7% and e-commerce sales surged 27.9%.
It’s the type of ASX 200 blue-chip share that can just benefit from the steady growth of Australia’s population. Coles can just open new stores over the years and benefit from slow food inflation over time to see its bottom line improve.
Using the projection on Commsec, the Coles share price is valued at 23x FY26’s projected profit with a possible dividend yield of 3.75%, which doesn’t include the benefit of the franking credits.
Telstra Group Ltd (ASX: TLS)
Everyone knows Telstra as the country’s biggest telecommunications business. Its network covers 3 million square kilometres, or 99.7% of the population.
It also claims to have Australia’s largest 5G network, with 95% population coverage. The company recently launched Australia’s first satellite to mobile text messaging product.
Also, Telstra plans to invest another $800 million into its mobile network to maintain its leadership and deliver “5G Advanced performance that is faster, more reliable and more efficient than 5G today”.
Additionally, the ASX 200 blue-chip share is working on an intercity fibre network. The Sydney to Canberra coastal route is live and the Canberra to Melbourne coastal route was expected to go live in the last few months.
Overall, the company is benefiting from growing demand for connectivity and it’s investing accordingly.
It’s focused on delivering value for shareholders, achieving growth in its core business cashflow, it has active portfolio and investment management, and it wants to continue being disciplined with its capital management.
With mobile earnings rising thanks to a growing subscriber base and rising mobile prices, the future looks bright for Telstra.
According to the forecast on Commsec, it’s valued at 24x FY26’s forecast earnings with a dividend yield of 4.1%, excluding the bonus of franking credits.
