Explore BHP (ASX:BHP) for a Blue Chip Investment

As we step into 2023, the BHP Group Ltd (ASX:BHP) share price has already surged by an impressive 4.9%, showcasing its resilience and attractiveness to investors. Simultaneously, the REA Group Ltd (ASX:REA) share price hovers near its 52-week high, reflecting stability and potential for growth. This article delves into the reasons why both BHP and REA shares merit consideration for inclusion in your ASX investing stock watchlist.

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BHP Group: A Pillar in Natural Resources

History and Diversification:

Founded in 1885, BHP Group, formerly known as BHP Billiton, stands as a diversified natural resources company. With a robust portfolio, it specializes in mineral exploration and production across three key areas: Copper and related minerals (gold, uranium, silver, zinc, etc.), Iron Ore, and Coal (metallurgical and energy).

Reliable Dividend Performer:

BHP shares have earned a reputation as a reliable dividend-paying investment, making them a common choice for ASX share portfolios. Whether held through popular ETFs, LICs, or Industry Super investments, BHP often finds a place in diverse investment strategies.

REA Group: Shaping Real Estate Advertising Globally

Establishment and Ownership:

Established in 1995, REA Group is a Melbourne-based real estate advertising company primarily owned by News Corp. Its flagship platform, Realestate.com.au, dominates the Australian real estate landscape.

Global Presence:

Operating on a global scale, REA Group spans approximately 10 countries, serving around 20,000 agents. The core Australian website alone garners over 55 million visits monthly. The company's revenue is geographically distributed, with Australia contributing significantly. REA generates income through property listings and services, including mortgage broking.

Competitive Edge:

The competitive advantage of REA lies in robust network effects and efficient scale. With a substantial lead over competitors like Domain, REA can maintain higher charges, solidifying its market position.

Share Price Valuation Insights

BHP Share Price:

Assessing BHP's valuation, one metric worth examining is the dividend yield. Currently standing at approximately 5.49%, BHP shares trade below their 5-year average of 9.38% in terms of dividend yield. This suggests potential value, presenting an opportunity for investors.