Last Updated on December 29, 2020 by Henry John
Large-cap stocks are typically blue-chip stocks with a market cap over $100 billion. They are the direct opposite of small-cap stocks; stable and predictable, making them less risky (the average Joe’s kind of stocks).
The predictability of these stocks comes from the fact that they have a long history of trading on the market, typically, they have at least a 25 years history. And with respect to stability, these kinds of stocks are often old and established (hold a dominant position in their respective markets). Think of Starbucks, Procter & Gamble, Microsoft, IBM, and Coca-Cola, and you are thinking of the typical large-cap stocks.
Most Large-cap Stocks have little room to grow, hence, the typical winners tend to grow moderately, and however, there are few exceptions, like Tesla.
Coca-Cola, for instance, has seen its stock price grown just 22% over the past five years, while Zoom Video Communications was a small-cap stock five years has grown by 600% in the same timeframe.
You can’t expect large-cap stocks like Coca-Cola to have the kind of wild growth Zoom had. However, you can expect them to pay you dividends; dividends are what you don’t normally get with small-cap stocks.
From a market cap standpoint, Tesla can be considered a large-cap stock, albeit not your typical large-cap stock, because it still has lots of room to grow.
Large-cap stocks like Tesla have the potential for wild-growth, nonetheless, like small-cap stocks, the more the reward the more the risk. As such, if you are looking for stability and predictability with moderate growth, avoiding the likes of Tesla will serve you well.
If you are looking to invest in large-cap stocks that are stable, predictable, and pay dividends; here are really good large-cap stocks to consider:
Annual Dividend Payout: $2.16 per share
Walmart Inc. engages in the retail and wholesale operations in various formats worldwide.
The company operates in three segments: Walmart U.S., Walmart International, and Sam’s Club.
It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, discount stores, drugstores, and convenience stores; membership-only warehouse clubs; ecommerce websites, such as walmart.com, walmart.com.mx, asda.com, walmart.ca, flipkart.com, and samsclub.com; and mobile commerce applications.
The company offers grocery products, including meat, produce, natural and organics, deli and bakery, dairy, frozen foods, alcoholic and nonalcoholic beverages, and floral and dry grocery, as well as consumables, such as health and beauty aids, baby products, household chemicals, paper goods, and pet supplies; and health and wellness products.
It also provides electronics, cameras and supplies, photo processing services, wireless, movies, music, video games, and books; stationery, automotive, hardware and paint, sporting goods, and outdoor living and horticulture; apparel for women, girls, men, boys, and infants, as well as shoes, jewelry, and accessories; and home furnishings, housewares and small appliances, bedding, home decor, toys, fabrics, crafts, and seasonal merchandise, as well as brand name merchandise.
In addition, the company offers fuel and financial services and related products, including money orders, prepaid cards, money transfers, check cashing, and bill payment.
It operates approximately 11,500 stores and various e-commerce Websites under the 56 banners in 27 countries.
The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas.
2. General Motors
Annual Dividend Payout: $1.52 per share
General Motors Company designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide.
The company operates through GM North America, GM International, Cruise, and GM Financial segments.
It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling brand names.
The company also sells trucks, crossovers, and cars to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments.
In addition, it offers safety and security services for retail and fleet customers, including automatic crash response, emergency services, crisis assist, stolen vehicle assistance, roadside assistance, and turn-by-turn navigation, as well as connected services comprising mobile applications for owners to remotely control their vehicles and electric vehicle owners to locate charging stations, on-demand vehicle diagnostics, smart driver, marketplace in-vehicle commerce, connected navigation, SiriusXM with 360L, and 4G LTE wireless connectivity.
Further, the company provides automotive financing services; and operates an online new vehicle store. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.
3. Johnson and Johnson
Annual Dividend Payout: $4.04 per share
Johnson & Johnson researches and develops, manufactures, and sells various products in the health care field worldwide.
It operates in three segments: Consumer, Pharmaceutical, and Medical Devices.
- The Consumer segment offers baby care products under the JOHNSON’S brand; oral care products under the LISTERINE brand; beauty products under the AVEENO, CLEAN & CLEAR, DR. CI:LABO NEUTROGENA, and OGX brands; over-the-counter medicines, including acetaminophen products under the TYLENOL brand; cold, flu, and allergy products under the SUDAFED brand; allergy products under the BENADRYL and ZYRTEC brands; ibuprofen products under the MOTRIN IB brand; and acid reflux products under the PEPCID brand. This segment also provides women’s health products, such as sanitary pads and tampons under the STAYFREE, CAREFREE, and o.b. brands; wound care products comprising adhesive bandages under the BAND-AID brand; and first aid products under the NEOSPORIN brand.
- The Pharmaceutical segment offers products in various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, and cardiovascular and metabolic diseases.
- The Medical Devices segment provides orthopedic products; general surgery, biosurgical, endomechanical, and energy products; electrophysiology products to treat cardiovascular diseases; and vision care products, such as disposable contact lenses and ophthalmic products related to cataract and laser refractive surgery.
The company markets its products to general public, and retail outlets and distributors, as well as distributes directly to wholesalers, hospitals, and health care professionals for prescription use.
Johnson & Johnson was founded in 1886 and is based in New Brunswick, New Jersey.
Annual Dividend Payout: $0.88 per share
AstraZeneca PLC discovers, develops, and commercializes prescription medicines in the areas of oncology, cardiovascular, renal and metabolism, respiratory, autoimmunity, infection, neuroscience, and gastroenterology worldwide.
Its marketed products include Arimidex, Casodex/Cosudex, Calquence, Faslodex, Imfinzi, Iressa, Lynparza, Nolvadex, Tagrisso, and Zoladex for oncology diseases; Atacand/Atacand HCT/Atacand Plus, Brilinta/Brilique, Crestor, Plendil, Seloken/Toprol-XL, Tenormin, and Zestril for cardiovascular diseases; and Bydureon, Byetta, Farxiga/Forxiga, Kombiglyze XR/Komboglyze, Onglyza, Qtern, Symlin, Xigduo/Xigduo XR for metabolic diseases.
The company’s marketed products also comprise Accolate, Bevespi Aerosphere, Bricanyl Respules, Bricanyl Turbuhaler, Daliresp/Daxas, Duaklir Genuair, Tudorza/Eklira, Fasenra, Oxis Turbuhaler, Pulmicort Turbuhaler/Pulmicort Flexhaler, Pulmicort Respules, Symbicort pMDI, and Symbicort Turbuhaler for respiratory diseases; Fluenz Tetra/FluMist Quadrivalen and Synagis for infection diseases; Movantik/Moventig, Seroquel IR/Seroquel XR, and Vimovo for neuroscience diseases; and Losec/Prilosec and Nexium for gastrointestinal diseases.
The company serves primary care and specialty care physicians through distributors and local representative offices. It has a collaboration agreement with Arcus Biosciences, Inc. to evaluate domvanalimab (AB154), an investigational anti-TIGIT antibody in combination with Imfinzi (durvalumab); and Fusion Pharmaceuticals Inc. to develop and commercialize next-generation alpha-emitting radiopharmaceuticals and combination therapies for the treatment of cancer.
The company was formerly known as Zeneca Group PLC and changed its name to AstraZeneca PLC in April 1999. AstraZeneca PLC was founded in 1992 and is headquartered in Cambridge, the United Kingdom.
Annual Dividend Payout: $2.51 per share
Verizon Communications Inc. offers communications, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide.
Its Consumer segment provides postpaid and prepaid service plans; Internet access on notebook computers and tablets; wireless equipment, including smartphones and other handsets; and wireless-enabled Internet devices, such as tablets, laptop computers and netbooks, and other wireless-enabled connected devices, such as smart watches and other wearables.
It also provides residential fixed connectivity solutions, including Internet, video, and voice services; and sells network access to mobile virtual network operators.
As of December 31, 2019, it had approximately 95 million wireless retail connections, 6 million broadband connections, and 4 million Fios video connections.
The company’s Business segment provides network connectivity products, including private networking, private cloud connectivity, virtual and software defined networking, and Internet access services; and Internet protocol-based voice services, unified communications and collaboration tools, and customer contact center solutions.
It also offers a suite of management and data security services; domestic and global voice and data solutions, including voice calling, messaging services, conferencing, contact center solutions, and private line and data access networks; customer premises equipment; installation, maintenance, and site services; and IoT products and services.
This segment had 25 million wireless retail postpaid connections and 489 thousand broadband connections.
The company has strategic partnership with HERE Technologies and Dignitas; and Emory Healthcare to develop and test 5G Ultra Wideband-enabled use cases.
The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was founded in 1983 and is headquartered in New York, New York.