Top 10 ASX blue chip shares to watch right now
Investing in blue-chip shares can be a powerful way to build a stable and diversified portfolio. Meet the 10 leading blue-chip stocks on the ASX in 2025.
What is a blue chip stock?
A blue-chip stock is the stock of a well-established and financially stable company with a history of consistent growth and a strong track record of performance. These companies have a large market capitalisation, high liquidity, and often a reputation for paying dividends. Blue-chip stocks are considered to be less risky investments than other stocks and are often found in major indices such as the ASX 200.
Blue-chip stocks are typically from mature industries and have a strong market position, such as well-known brands and a reputation for quality products or services. Although stock investing is inherently risky, blue-chip stocks are considered less volatile than more speculative firms.
Learn more about the characteristics of blue chip stocks and whether they are right for you.
✅ Interested in Wall St? Discover our list of the top U.S. blue chip stocks
List of the top Australian blue chip companies
Company Name | Ticker | Share Price | 1YR Return | Market Capitalisation |
|---|---|---|---|---|
Commonwealth Bank of Australia | $169.66 | +45.52% | $283.92b | |
BHP Group | $38.08 | -10.92% | $193.29b | |
CSL Limited | $256.41 | +2.11% | $124.16b | |
Westpac Banking Corp | $33.45 | +23.34% | $114.51b | |
National Australia Bank | $36.49 | +5.28% | $111.75b | |
Telstra Group | $4.58 | +27.58% | $52.68b | |
Woolworths Group | $32.68 | +7.18% | $39.92b | |
Woodside Energy Group | $20.61 | -24.59% | $39.13b | |
Insurance Australia Group | $8.28 | +29.37% | $19.58b | |
Qantas Airways | $9.06 | +53.56% | $13.71b |
Data as of 2 May 2025. Source: Stake, Google.
*The list of blue chip stocks mentioned is ranked by market capitalisation. When deciding what companies to feature, we analyse the company's financials, recent news, advancement in their timeline, and whether or not they are actively traded on Stake.
Here are some of the best blue-chip shares on the ASX to watch
1. Commonwealth Bank ($CBA)
Commonwealth Bank of Australia is Australia’s leading financial services company and the largest firm on the ASX. Founded in 1911, the bank provides a range of banking and investment products and services, serving both individuals and corporations. CBA has a strong track record of both profitability and stability, making it a compelling blue-chip stock.
CBA has grown substantially over the past year on better-than-expected earnings and lower-than-expected credit losses. The firm currently has a dividend yield of 2.9% and analysts expect continued revenue growth over the next few years.
🆚 Compare CBA vs WBC→
🆚 Compare CBA vs ANZ→
2. BHP Group ($BHP)
BHP Group is one of the largest mining and resource companies in the world. Founded in 1885 as the Broken Hill Proprietary Company, BHP operates in a variety of sectors, including energy, copper, iron, coal, and nickel. The firm is geographically diversified with operations in Australia, North America, South America, Africa, and Asia.
BHP Group is known for its commitment to sustainability, with a focus on reducing greenhouse gas emissions and improving safety and health. The firm’s long operating history and valuable mining portfolio make it a clear blue-chip stock. BHP has a dividend yield of 2.7%, although analysts expect revenue to fall slightly over the next few years.
3. CSL Limited ($CSL)
CSL is a leading Australian biotechnology firm active in researching and developing products to treat conditions like immune deficiency disorders, hemophilia, and certain rare diseases. Founded in 1916 as an Australian government department, the firm was spun off privately in 1994.
Although biotechnology can be a volatile industry, CSL has earned its blue-chip status thanks to its large size and proven industry expertise. Although the firm’s 1.1% dividend yield is smaller than peers, analysts expect continued revenue growth of more than 6 points annually through 2027.
4. Westpac Banking Corporation ($WBC)
Westpac Banking Corporation is a financial services company founded in 1817. The company offers a range of banking and investment products and services across the financial industry, serving both individuals and corporations. With a market cap of $106.5 billion, Westpac is currently the second-largest of Australia’s Big Four banks.
Although Westpac has been shrinking its branch locations in recent years and embracing greater digital banking, the firm remains a key blue-chip bank in Australia. Westpac currently has an attractive 4.9% dividend yield, with analysts forecasting small revenue growth through 2027.
💡Related: Which are the best ASX bank shares to invest in?→
5. National Australia Bank (NAB)
National Australia Bank (NAB) is the third-largest of Australia’s four major banks. It offers a wide range of banking and financial services to customers. NAB is known for its strong presence in the Australian market and its focus on providing services to small and medium-sized businesses.
NAB is somewhat younger than peers, having been formed in 1981 as part of a merger. However, the company’s relative stability and compelling 5.0% dividend yield are indicative of blue-chip status. Analysts expect NAB’s revenue to grow by about two points annually over the next few years.
6. Telstra Group ($TLS)
Founded in 1975, Telstra Group is one of Australia’s leading telecommunications companies. The firm provides a range of services, including mobile, internet, and phone connectivity. Telstra has a reputation for delivering world-class solutions to customers across the country at an affordable price.
Telstra is notable for having a five-year beta of just 0.25, meaning that its shares have been much less volatile than the broader market. When combined with the firm’s 4.3% dividend yield, this blue-chip stock could be a strong choice for investors seeking stability and income. Analysts expect Telstra's revenue to grow modestly through 2027.
7. Woolworths ($WOW)
Woolworths is a retailer serving Australia and New Zealand. The firm is known for its branded supermarkets, although Woolworths also operates a portfolio of discount stores. Founded in 1924, Woolworths has been a consistent presence in the region for over a century.
Although retail can be a cyclical industry, Woolworths’ focus on consumer staples means it is likely to be less sensitive to economic trends than peers. As such, this long-standing firm could be a valuable addition to a blue-chip portfolio. Woolworths features a dividend yield of 3.3% and forecasted revenue growth of nearly 4% in 2026.
8. Woodside Energy Group ($WDS)
Woodside Energy Group (formerly Woodside Petroleum) is one of the largest energy companies in Australia. Founded in 1954, the firm has focused almost exclusively on natural gas development throughout its history. In recent years, however, Woodside has also begun to invest in hydrogen and ammonia energy projects.
Earlier this year, Woodside closed a landmark deal to sell a stake in its new U.S. natural gas plant for nearly $6 billion. These funds are likely to help the firm develop projects across both existing and new energy sources. Woodside currently pays a dividend yield of 6.1%, potentially making it a good fit for income-focused investors.
9. Insurance Australia Group ($IAG)
Insurance Australia Group (IAG) provides a wide range of insurance products and services, including both business and personal coverage. Although IAG is not a consumer-facing brand itself, the company operates divisions including NRMA Insurance and CGU Insurance.
IAG is particularly known for its strong focus on the Australian and New Zealand markets, having previously rolled back its exposure to several Asian countries. Notably, the company’s shares have a five-year beta of just 0.07, indicating that they are far less volatile than the broader market. IAG pays a 4.3% dividend yield and is forecasted to achieve 7% revenue growth in 2026.
10. Qantas ($QAN)
Qantas is Australia's flagship airline and is the oldest airline in the English-speaking world. Originally founded in 1920, Qantas has a lengthy track record of successful operations and currently has an impressive 60% market share for domestic Australian flights.
Notably, Qantas also has an impressive reputation for safety, consistently ranking as one of the world’s safest airlines. Although Qantas shares are somewhat more volatile than blue-chip peers, the firm pays a dividend yield of nearly 4% and is expected to have healthy revenue growth in the near future.
How to invest in blue chip shares in Australia?
The main way to invest in blue chip companies is through shares listed on the ASX, using an online investment platform. Follow our step by step guide below:
1. Find a stock investing platform
To buy blue chip shares on the ASX, you'll need to sign up to an investing platform with access to the Aussie stock market. There are several share investing platforms available, of which Stake is one.
Get started with Stake
Sign up to Stake and join 500k+ investors accessing the ASX & Wall St all in one place.
2. Fund your account
Open an account by completing an application with your personal and financial details. Fund your account with a bank transfer, debit card or even Apple/Google Pay.
3. Search for the company or ticker symbol
Find the company name or ticker symbol. It is advised to conduct your own research to ensure you are purchasing the right investment product for your individual circumstances.
4. Set a market or limit order and buy the shares
Buy on any trading day using a market order, or a limit order to delay your purchase of the asset until it reaches your desired price. You may wish to look into dollar cost averaging to spread out your risk, which smooths out buying at consistent intervals.
5. Monitor your investment
Once you own the stock, you should monitor its performance. Check your portfolio regularly to ensure your investment is aligning with your financial goals.
Pros and cons of investing in blue chip companies
Pros | Cons |
Shares tend to be less volatile than the market | Less likely to grow quickly than newer firms |
Often have a track record of consistent dividends | May prefer to return capital to shareholders rather than reinvest for growth |
Tend to have a strong brand, making it harder for competitors to win market share | High dividend yields may have tax implications for investors |
Typically find it easier to raise capital to fund further expansion | May have misleading stability if ‘black swan’ risks emerge |
Which Australian blue chip shares have good dividends?
Blue-chip firms often have a track record of steady and reliable dividend payments. Some leading Australian companies that have a history of paying dividends include:
Telstra Group ($TLS). Dividend yield: 4.3%
Westpac Banking Corporation ($WBC) - Dividend yield: 4.9%
Woodside Energy Group ($WDS) - Dividend yield: 6.1%
National Australia Bank ($NAB) - Dividend yield: 5.0%
Note that dividend payments aren’t guaranteed. Firms may have to pause their dividends if the business environment declines.
Find more opportunities in our list of ASX blue chip dividend stocks.
💡Related: Are these the best dividend stocks on ASX?→
💡Related: Check out 10 high dividend ETFs in Australia→
More resources:
✅ Discover the top U.S. blue chip stocks→
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✅ Are these the best ETFs to buy and hold in Australia?→
Blue chip shares FAQs
Blue-chip stocks are generally considered to be a good investment due to their financial stability and strong track record of performance. They are often considered to be less risky investments than other stocks and are found in major indices such as the ASX 200.
However, no stock is immune from risk. Blue-chip firms can still experience downturns or go bankrupt. Moreover, blue-chip stocks may not be a good investment for investors willing to endure greater volatility for the opportunity to achieve higher growth.
While there’s no precise definition of ‘blue chip,’ there are a few common factors to stocks often considered in this category:
- Market Capitalisation: Blue chip stocks typically have a large market capitalisation, meaning they are worth a significant amount of money.
- Financial stability: Blue chip companies tend to have a strong financial track record, with consistent earnings and revenue growth.
- Reputation: Blue chip companies are usually well-known brands with a reputation for quality products or services.
- Dividend history: Blue chip companies tend to have a history of paying dividends to shareholders, which can be a sign of financial stability and profitability.
- Industry: Blue chip stocks are often from mature industries, such as healthcare, financial services, or consumer goods.
- Stock performance: Blue chip stocks tend to have a strong performance history, with steady or increasing stock prices over time.
There are several blue-chip ETFs listed on the Australian Securities Exchange (ASX) that allow investors to invest in a diversified portfolio of blue chip stocks. Some examples include:
- iShares S&P/ASX 20 ETF ($ILC). This fund tracks the performance of the S&P/ASX 20 index, which is made up of the 20 largest and most liquid companies listed on the ASX. Holdings include CBA, BHP, and CSL.
- BetaShares Australian Dividend Harvester Active ETF ($HVST). This ETF is an actively managed fund that seeks to invest in attractive dividend opportunities. Holdings include BHP, CBA, and WBC.
- Vanguard Australian Shares High Yield ETF ($VHY). This fund aims to track the FTSE Australia High Dividend Yield Index, which is a portfolio of high-dividend firms on the ASX. Holdings include CBA, WBC, and NAB.
Although no ASX ETF is specifically marketed as a blue-chip fund, these options offer significant exposure to some of the country’s largest and most stable firms.
The information contained above does not constitute financial product advice nor a recommendation to invest in any of the securities listed. Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation and particular needs. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.
Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform is for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.
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