Last year, CSL returned 32% and BHP managed to gain 21%. Both of these companies are in the top 20 largest companies on the ASX. If you are looking for a blue chip with double digit gains, you are looking for a company which is increasing its revenues and profits.
Here are my 4 tips:
- My top 20 pick: Insurance Australia Group (IAG)
The strength of IAG’s Australia and New Zealand businesses, together with better-than-industry insurance margin and capital efficiency, should underpin IAG’s share price performance. The kicker will come from capital management with a 19.5 cent capital return approved at the AGM and the potential for more, if AIG divests its remaining Asian interests.