S&P 500   3,852.36
DOW   32,920.46
QQQ   311.72
Retirement Plans in 2023: Choosing the Right Account
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Mullen Automotive Stock Gains Momentum On Positive News
Apple’s Earnings, Expectations and Surprises
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Cathie Woods' Ark Innovation ETF Set To Rebound in 2023?
The Bottom Is In For Meta Platforms, Volatility Is Not Over
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Exxon Mobil Could Gush To New Highs Very Soon 
Closing prices for crude oil, gold and other commodities
S&P 500   3,852.36
DOW   32,920.46
QQQ   311.72
Retirement Plans in 2023: Choosing the Right Account
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Mullen Automotive Stock Gains Momentum On Positive News
Apple’s Earnings, Expectations and Surprises
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Cathie Woods' Ark Innovation ETF Set To Rebound in 2023?
The Bottom Is In For Meta Platforms, Volatility Is Not Over
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Exxon Mobil Could Gush To New Highs Very Soon 
Closing prices for crude oil, gold and other commodities
S&P 500   3,852.36
DOW   32,920.46
QQQ   311.72
Retirement Plans in 2023: Choosing the Right Account
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Mullen Automotive Stock Gains Momentum On Positive News
Apple’s Earnings, Expectations and Surprises
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Cathie Woods' Ark Innovation ETF Set To Rebound in 2023?
The Bottom Is In For Meta Platforms, Volatility Is Not Over
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Exxon Mobil Could Gush To New Highs Very Soon 
Closing prices for crude oil, gold and other commodities
S&P 500   3,852.36
DOW   32,920.46
QQQ   311.72
Retirement Plans in 2023: Choosing the Right Account
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Mullen Automotive Stock Gains Momentum On Positive News
Apple’s Earnings, Expectations and Surprises
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Cathie Woods' Ark Innovation ETF Set To Rebound in 2023?
The Bottom Is In For Meta Platforms, Volatility Is Not Over
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Exxon Mobil Could Gush To New Highs Very Soon 
Closing prices for crude oil, gold and other commodities

Largest Companies by Market Cap

Large cap stocks are established companies that have a market capitalization of $10 billion or more and trade on the stock market. Large-cap stocks comprise over 90% of the value of all publicly-traded stocks in the United States. This page lists the 100 largest companies by market capitalization. What is a large cap stock?

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
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Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
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Analyst consensus is the average investment recommendation among Wall Street research analysts.
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Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyCurrent PricePE RatioMarket CapVolumeAverage VolumeIndicator(s)
Apple Inc. stock logo
AAPL
Apple
$150.82
+3.7%
24.68$2.39 trillion102.38 million74.33 millionEarnings Report
Dividend Increase
Gap Up
Microsoft Co. stock logo
MSFT
Microsoft
$264.60
+4.7%
29.40$1.97 trillion39.14 million33.50 millionAnalyst Report
Gap Up
Alphabet Inc. stock logo
GOOG
Alphabet
$108.80
+7.3%
21.61$1.41 trillion44.73 million27.21 millionAnalyst Report
Analyst Revision
Gap Up
Alphabet Inc. stock logo
GOOGL
Alphabet
$107.74
+7.3%
21.40$1.39 trillion66.69 million35.33 millionAnalyst Report
Options Volume
Analyst Revision
News Coverage
Gap Up
Amazon.com, Inc. stock logo
AMZN
Amazon.com
$112.91
+7.4%
103.63$1.15 trillion146.42 million79.86 millionEarnings Report
Options Volume
Gap Up
Berkshire Hathaway Inc. stock logo
BRK.A
Berkshire Hathaway
$472,115.00
+0.3%
N/A$689.29 billion4,5934,163
Berkshire Hathaway Inc. stock logo
BRK.B
Berkshire Hathaway
$311.86
+0.4%
N/A$685.23 billion4.38 million3.40 millionPositive News
Tesla, Inc. stock logo
TSLA
Tesla
$188.27
+3.8%
51.96$594.51 billion214.80 million196.67 millionInsider Selling
Gap Up
NVIDIA Co. stock logo
NVDA
NVIDIA
$217.09
+3.7%
92.38$540.55 billion55.89 million48.53 million
Taiwan Semiconductor Manufacturing Company Limited stock logo
TSM
Taiwan Semiconductor Manufacturing
$96.65
+2.0%
14.73$501.26 billion14.79 million15.93 million
Meta Platforms, Inc. stock logo
META
Meta Platforms
$188.77
+23.3%
18.00$500.53 billion149.83 million34.29 millionEarnings Report
Analyst Upgrade
Analyst Revision
News Coverage
Gap Up
High Trading Volume
Exxon Mobil Co. stock logo
XOM
Exxon Mobil
$111.15
-3.1%
8.38$457.75 billion24.46 million16.99 millionEarnings Report
Dividend Announcement
Analyst Report
UnitedHealth Group Incorporated stock logo
UNH
UnitedHealth Group
$470.83
-5.3%
22.22$439.92 billion11.13 million4.35 millionHigh Trading Volume
Johnson & Johnson stock logo
JNJ
Johnson & Johnson
$165.54
+0.4%
24.56$432.80 billion10.06 million8.20 millionAnalyst Report
Visa Inc. stock logo
V
Visa
$229.56
-0.6%
32.11$432.37 billion7.00 million6.39 million
JPMorgan Chase & Co. stock logo
JPM
JPMorgan Chase & Co.
$138.94
-0.5%
11.50$407.54 billion11.08 million10.48 millionAnalyst Report
Walmart Inc. stock logo
WMT
Walmart
$143.62
-0.7%
44.33$387.31 billion5.91 million5.37 million
Mastercard Incorporated stock logo
MA
Mastercard
$374.94
+0.2%
36.69$360.49 billion2.76 million3.23 million
The Home Depot, Inc. stock logo
HD
Home Depot
$339.79
+3.6%
20.48$347.85 billion4.58 million3.22 million
The Procter & Gamble Company stock logo
PG
Procter & Gamble
$142.17
-0.7%
24.94$335.40 billion6.42 million7.44 million
Chevron Co. stock logo
CVX
Chevron
$169.01
-1.4%
9.25$326.80 billion10.04 million9.26 millionEarnings Report
Analyst Report
Buyback Announcement
Eli Lilly and Company stock logo
LLY
Eli Lilly and
$330.70
-3.5%
49.65$314.22 billion13.00 million3.03 millionEarnings Report
Analyst Revision
News Coverage
Gap Down
High Trading Volume
Novo Nordisk A/S stock logo
NVO
Novo Nordisk A/S
$132.34
-4.8%
39.27$299.48 billion4.06 million1.65 millionHigh Trading Volume
Alibaba Group Holding Limited stock logo
BABA
Alibaba Group
$109.74
-2.7%
274.36$290.61 billion23.28 million21.81 million
Bank of America Co. stock logo
BAC
Bank of America
$36.13
+0.6%
11.33$289.85 billion33.39 million40.34 millionDividend Announcement
Analyst Downgrade
ASML Holding stock logo
ASML
ASML
$696.55
+2.7%
42.52$280.43 billion1.31 million1.14 millionDividend Announcement
Gap Up
Merck & Co., Inc. stock logo
MRK
Merck & Co., Inc.
$103.46
-3.3%
17.21$262.31 billion16.17 million9.05 millionNews Coverage
The Coca-Cola Company stock logo
KO
Coca-Cola
$60.28
-1.7%
26.32$260.68 billion16.77 million13.19 million
AbbVie Inc. stock logo
ABBV
AbbVie
$144.84
-1.2%
19.34$256.15 billion6.11 million5.97 millionUpcoming Earnings
Broadcom Inc. stock logo
AVGO
Broadcom
$605.77
+0.5%
22.86$253.15 billion2.41 million2.26 million
Pfizer Inc. stock logo
PFE
Pfizer
$44.34
+0.8%
8.09$248.89 billion35.16 million26.47 millionEarnings Report
Analyst Report
Analyst Revision
Oracle Co. stock logo
ORCL
Oracle
$89.38
-0.7%
28.02$240.99 billion8.27 million6.82 million
PepsiCo, Inc. stock logo
PEP
PepsiCo
$169.97
-0.9%
24.32$234.17 billion5.62 million4.61 millionUpcoming Earnings
Dividend Announcement
PepsiCo, Inc. stock logo
PEP
PepsiCo
$169.97
-0.9%
23.35$234.17 billion5.62 million4.61 million
Costco Wholesale Co. stock logo
COST
Costco Wholesale
$523.43
+1.2%
39.56$232.26 billion2.26 million2.06 millionAnalyst Downgrade
Insider Selling
Thermo Fisher Scientific Inc. stock logo
TMO
Thermo Fisher Scientific
$587.07
0.0%
33.00$230.25 billion2.30 million1.92 millionEarnings Report
Analyst Report
News Coverage
Shell plc stock logo
SHEL
Shell
$57.63
-1.2%
5.03$207.31 billion9.65 million4.44 millionGap Up
High Trading Volume
The Walt Disney Company stock logo
DIS
Walt Disney
$113.21
+3.5%
65.82$206.81 billion13.01 million11.45 millionUpcoming Earnings
Analyst Report
Cisco Systems, Inc. stock logo
CSCO
Cisco Systems
$49.32
+1.5%
17.81$202.65 billion17.83 million16.58 millionAnalyst Downgrade
NIKE, Inc. stock logo
NKE
NIKE
$129.06
-0.3%
36.36$200.12 billion5.19 million6.66 million
Danaher Co. stock logo
DHR
Danaher
$270.68
+1.2%
28.05$197.04 billion2.52 million2.96 millionAnalyst Downgrade
AstraZeneca PLC stock logo
AZN
AstraZeneca
$63.15
-0.6%
94.26$195.74 billion8.77 million6.29 millionUpcoming Earnings
Abbott Laboratories stock logo
ABT
Abbott Laboratories
$112.25
+0.4%
28.71$195.72 billion5.00 million5.11 million
AstraZeneca PLC stock logo
AZN
AstraZeneca
$63.15
-0.6%
N/A$195.69 billion8.77 million6.29 millionNews Coverage
McDonald's Co. stock logo
MCD
McDonald's
$263.21
-1.1%
31.52$192.78 billion3.72 million2.79 millionEarnings Report
Dividend Announcement
Analyst Report
Options Volume
Analyst Revision
Novartis AG stock logo
NVS
Novartis
$86.10
-2.4%
8.85$190.50 billion2.94 million2.28 millionGap Down
Accenture plc stock logo
ACN
Accenture
$294.10
+3.7%
26.71$185.35 billion2.71 million2.25 millionAnalyst Downgrade
Analyst Revision
Gap Up
T-Mobile US, Inc. stock logo
TMUS
T-Mobile US
$146.95
-2.7%
120.45$182.83 billion8.64 million5.63 millionEarnings Report
Analyst Report
Wells Fargo & Company stock logo
WFC
Wells Fargo & Company
$47.23
+0.4%
15.04$179.97 billion18.07 million19.97 millionOptions Volume
Adobe Inc. stock logo
ADBE
Adobe
$392.23
+2.2%
38.83$179.56 billion4.00 million2.56 millionGap Up
Comcast Co. stock logo
CMCSA
Comcast
$41.11
+2.9%
34.55$177.74 billion21.30 million20.96 millionAnalyst Report
Insider Selling
Verizon Communications Inc. stock logo
VZ
Verizon Communications
$41.83
+0.3%
8.27$175.68 billion18.34 million23.60 million
Salesforce, Inc. stock logo
CRM
Salesforce
$174.64
+1.6%
623.71$174.64 billion10.58 million10.07 millionInsider Selling
Gap Up
Morgan Stanley stock logo
MS
Morgan Stanley
$99.21
+1.0%
16.16$167.68 billion9.06 million8.62 millionAnalyst Report
Insider Selling
Texas Instruments Incorporated stock logo
TXN
Texas Instruments
$184.72
+1.4%
19.65$167.65 billion11.65 million6.14 millionOptions Volume
United Parcel Service, Inc. stock logo
UPS
United Parcel Service
$191.29
+3.4%
14.49$165.45 billion5.00 million2.93 millionEarnings Report
Dividend Increase
Analyst Report
Buyback Announcement
Analyst Revision
News Coverage
Invesco QQQ Trust stock logo
QQQ
Invesco QQQ Trust
$311.72
+3.6%
N/A$164.67 billion79.80 million50.52 millionPositive News
Gap Up
Linde plc stock logo
LIN
Linde
$332.05
+0.3%
43.92$163.55 billion2.52 million2.10 millionUpcoming Earnings
Netflix, Inc. stock logo
NFLX
Netflix
$366.89
+1.4%
36.87$163.39 billion7.81 million10.10 millionInsider Selling
Philip Morris International Inc. stock logo
PM
Philip Morris International
$103.51
-1.8%
18.45$160.46 billion4.35 million4.67 millionUpcoming Earnings
Analyst Report
TotalEnergies SE stock logo
TTE
TotalEnergies
$60.25
-1.3%
6.89$157.05 billion2.22 million1.77 millionUpcoming Earnings
Bristol-Myers Squibb stock logo
BMY
Bristol-Myers Squibb
$72.77
+2.2%
23.70$154.72 billion12.97 million8.57 millionNews Coverage
QUALCOMM Incorporated stock logo
QCOM
QUALCOMM
$135.85
-1.9%
11.94$151.77 billion17.23 million8.96 millionEarnings Report
NextEra Energy, Inc. stock logo
NEE
NextEra Energy
$75.60
+1.8%
36.17$150.23 billion18.60 million9.76 million
HSBC Holdings plc stock logo
HSBC
HSBC
$36.23
-1.9%
12.16$147.18 billion2.46 million2.29 million
SAP SE stock logo
SAP
SAP
$122.97
+1.6%
59.69$145.05 billion866,4271.06 million
AT&T Inc. stock logo
T
AT&T
$20.28
+0.5%
N/A$144.54 billion34.93 million38.77 million
Raytheon Technologies Co. stock logo
RTX
Raytheon Technologies
$96.96
-1.5%
27.70$142.54 billion6.01 million5.23 millionAnalyst Revision
Advanced Micro Devices, Inc. stock logo
AMD
Advanced Micro Devices
$88.31
+4.3%
100.35$142.39 billion97.12 million60.52 millionEarnings Report
Analyst Report
Royal Bank of Canada stock logo
RY
Royal Bank of Canada
$102.45
-0.3%
11.91$141.97 billion485,502974,886
Honeywell International Inc. stock logo
HON
Honeywell International
$207.38
+0.3%
26.55$139.43 billion7.18 million3.32 millionEarnings Report
News Coverage
Gap Down
High Trading Volume
The Charles Schwab Co. stock logo
SCHW
Charles Schwab
$76.62
-2.1%
21.89$139.13 billion12.30 million10.32 millionInsider Selling
Analyst Revision
ConocoPhillips stock logo
COP
ConocoPhillips
$111.30
-5.4%
8.02$138.69 billion11.49 million5.27 millionNews Coverage
Gap Down
High Trading Volume
Lowe's Companies, Inc. stock logo
LOW
Lowe's Companies
$221.56
+3.7%
21.70$137.52 billion4.12 million3.03 million
Amgen Inc. stock logo
AMGN
Amgen
$246.53
+0.0%
20.36$131.54 billion5.48 million2.47 millionEarnings Report
Analyst Report
Analyst Revision
High Trading Volume
Union Pacific Co. stock logo
UNP
Union Pacific
$213.41
+2.6%
19.02$131.20 billion3.43 million2.87 million
American Express stock logo
AXP
American Express
$173.13
-0.3%
17.59$129.37 billion6.29 million4.15 millionEarnings Report
Analyst Report
Caterpillar Inc. stock logo
CAT
Caterpillar
$244.90
-1.9%
19.36$127.45 billion6.12 million3.77 millionEarnings Report
Analyst Report
Analyst Revision
Unilever PLC stock logo
UL
Unilever
$50.27
-1.8%
N/A$127.29 billion2.38 million1.91 millionUpcoming Earnings
Intuit Inc. stock logo
INTU
Intuit
$452.16
+3.8%
68.82$127.02 billion1.91 million1.45 million
The Toronto-Dominion Bank stock logo
TD
Toronto-Dominion Bank
$69.05
+0.3%
9.43$125.80 billion1.38 million1.91 million
Starbucks Co. stock logo
SBUX
Starbucks
$109.15
-0.8%
38.71$125.37 billion9.60 million6.55 millionEarnings Report
The Boeing Company stock logo
BA
Boeing
$209.34
-2.5%
N/A$125.24 billion6.45 million7.42 millionAnalyst Revision
Intel Co. stock logo
INTC
Intel
$30.19
+3.9%
15.40$124.90 billion61.67 million43.92 millionInsider Buying
S&P Global Inc. stock logo
SPGI
S&P Global
$383.16
+1.6%
32.04$124.83 billion1.27 million1.43 millionUpcoming Earnings
Prologis, Inc. stock logo
PLD
Prologis
$134.49
+2.7%
30.92$124.15 billion3.11 million2.99 millionAnalyst Report
HDFC Bank Limited stock logo
HDB
HDFC Bank
$67.10
+3.7%
22.44$124.04 billion1.99 million1.52 million
The Goldman Sachs Group, Inc. stock logo
GS
The Goldman Sachs Group
$369.47
+1.0%
12.29$123.74 billion2.61 million3.55 millionAnalyst Report
International Business Machines Co. stock logo
IBM
International Business Machines
$136.39
+1.0%
77.49$123.31 billion6.08 million5.32 millionDividend Announcement
Deere & Company stock logo
DE
Deere & Company
$406.55
-4.8%
17.43$120.81 billion2.55 million1.41 million
Sanofi stock logo
SNY
Sanofi
$47.24
-3.1%
17.12$119.12 billion2.14 million2.38 million
Anheuser-Busch InBev SA/NV stock logo
BUD
Anheuser-Busch InBev SA/NV
$59.87
-0.7%
23.66$118.54 billion2.39 million1.59 millionOptions Volume
Positive News
Lockheed Martin Co. stock logo
LMT
Lockheed Martin
$457.19
-1.1%
21.06$116.72 billion2.10 million1.72 millionAnalyst Revision
Medtronic plc stock logo
MDT
Medtronic
$87.58
+2.1%
27.20$116.50 billion6.86 million7.05 million
Sony Group Co. stock logo
SONY
Sony Group
$93.80
+4.7%
15.38$116.03 billion1.61 million801,922News Coverage
Gap Up
High Trading Volume
BlackRock, Inc. stock logo
BLK
BlackRock
$770.73
+1.1%
22.70$115.76 billion1.10 million764,721Insider Selling
Elevance Health Inc. stock logo
ELV
Elevance Health
$480.41
-3.7%
19.38$115.30 billion1.67 million1.28 million
CVS Health Co. stock logo
CVS
CVS Health
$86.18
-1.5%
36.67$113.24 billion11.16 million10.44 millionUpcoming Earnings
BP p.l.c. stock logo
BP
BP
$35.20
-3.4%
N/A$109.12 billion16.74 million8.43 millionUpcoming Earnings
Stryker Co. stock logo
SYK
Stryker
$282.48
+1.3%
45.78$106.90 billion2.02 million1.54 millionEarnings Report
Analyst Report
Analyst Revision
Gap Up
 Large-Cap Stocks

Large-cap stocks are what many people refer to when they speak of a “flight to safety.” During periods of volatility even aggressive investors may shift their portfolio towards investments that offer stability and transparency. Those are the two primary benefits to large-cap stocks.

Although some analysts may disagree on what defines a large-cap stock, they are generally thought of to be the stocks of companies that have at least a $10 billion market capitalization. A distinguishing quality of large-cap stocks is they generally deliver quarterly profits and many return a portion of those profits to shareholders in the form of a dividend.

Many large-cap stocks fall into the category of blue-chip stocks. This gives them a beta of around 1. This means that during a bull market, large-cap stocks are not known for market-beating growth. However, all of the FAANG stocks are large-cap stocks so large-cap stocks are not without volatility.

For that reason, while large-cap stocks merit a position in any portfolio, the size of that position will depend on the age and investing style of individual investors. Younger investors and/or those investors with a high-risk tolerance and growth as their primary goal may choose to have a larger position in mid-cap or small-cap companies.

When you think about investing in large-cap stocks, the phrase bigger is better comes to mind. However, in the case of a large-cap stock better is in the eye of the beholder. Many value-oriented investors enjoy the relative stability that comes from these quality stocks. However growth-oriented investors may find that large-cap stocks don’t provide enough capital growth for their investing style.

And there’s a reason for this. Large-cap stocks are generally mature companies with strong financials. These companies reliably turn a profit on a quarterly basis. And many of these companies return some of that profit to shareholders in the form of dividends. Dividends are a reliable source of income and can increase total shareholder return over time. However, they do serve as a brake of sorts on the overall growth of a company’s stock.

In this article, we’ll take a closer look at large-cap stocks. In addition to listing the characteristics that define large-cap stocks, we’ll also look at how large-cap stocks are similar to blue-chip stocks. This includes the fact that many large-cap companies pay regular dividends. And because no investment is without risk, we’ll take a look at a few disadvantages of large-cap stocks.

The generally accepted Wall Street rule is that a large-cap stock is that of a company or corporation with a market capitalization of over $10 billion. Market capitalization (i.e. market cap) is a measurement of a company’s total market value.

The formula for calculating market capitalization is to multiply a company’s stock price by the number of shares outstanding. This means that a company that has a stock price of $75 and has 2 million shares outstanding would have a market cap of $150 million ($75 x $1,000,000).

By this metric, over 90% of the equities on United States stock exchanges fall under this category. The Dow Jones Industrial Average and the S&P 500 are two market indices that follow large-cap stocks.

Many large-cap stocks share the following characteristics:

  • A high degree of transparency – The vast majority of large-cap companies provide all the required filings with the Securities & Exchange Commission (SEC) and issue regular earnings reports. This allows investors to not only find but analyze public information about the companies they are interested in.

  • They may pay a dividend – Large-cap companies are typically in the mature phase of their business cycle. This means that many large-cap stocks pay dividends.

  • Large, stable companies – Because of their size, these companies generate predictable, stable revenue and earnings. The reason for this is that these stocks tend to have a correlation with the broader market. And large-cap companies tend to be market leaders. This gives them the resources to take innovative ideas from concept to creation.

  • You’re frequently investing in what you know – While not a guarantee of investment success, there is a benefit to investing in companies that have well-known brands. In fact, a tenet of Warren Buffett was to invest in companies who have businesses you understand.
  • Large-cap stocks are easily accessible – large-cap stocks are easy to buy and sell. This helps ensure adequate volume so that you can buy or sell a stock when you desire.

  • Diversification - The size of large-cap companies frequently gives investors exposure to multiple sectors in one stock. For example, an investment in a company like ExxonMobil (NYSE: XOM) gives investors exposure to the oil and gas sector as well as the commodities market and the renewable energy sector.
  • Many ways to invest - Large-cap stocks can be invested in as part of an index fund or an exchange-traded fund (ETF). These funds can allow investors to invest in particular sectors (e.g. financial, technology).

The accurate answer is they can be, but not always. In general, analysts use a $5 billion market cap as the minimum point for a blue-chip stock. However, fundamental and technical analysts agree there are no specific financial metrics that automatically turn a stock into a blue-chip stock, nor does a stock’s intrinsic value suggest that it falls into the blue-chip category. With that said, most blue-chip stocks are large-cap stocks because of the way they behave.

However since the market cap is the only specific criteria for defining a large-cap stock, not all large-cap stocks are blue-chip stocks. For example, all of the FAANG stocks (Facebook, Apple, Amazon, Netflix, and Google) are large-cap stocks. In fact, Apple and Amazon have two of the largest market caps on the market.

Most, but not all, large-cap stocks have a history of paying a dividend. And those that do frequently make dividend growth a primary goal. One of the reasons this is possible is because large-cap companies typically have rock solid balance sheets.

When looking for dividend stocks, investors can follow the advice of Ben Graham, author of The Intelligent Investor. Graham said that conservative investors should look for stocks that have a 20-year history of returning dividends. Many large-cap stocks meet this criterion. In fact, many large-cap stocks are also considered dividend aristocrats. This means the company has increased its dividend for at least 25 consecutive years.

In addition to providing a source of reliable, stable income an advantage of dividend stocks is the ability to reinvest dividends. This can produce a higher total return for investors than stocks that don’t pay a dividend.

As mentioned earlier, large-cap stocks have a place in almost every portfolio. However, there are some disadvantages that investors need to weigh when deciding how large of their portfolio to allocate to large-cap stocks.

Better suited for buy-and-hold investors – Buy-and-hold investors would not see this as a disadvantage. However, investing today is increasingly weighted by investors who are seeking to profit off a quick trade. This is because large-cap stocks may not move as rapidly as a more nimble small-cap stock. To profit off large-cap stocks usually requires buying shares and holding them over time.

This brings up another potential disadvantage for growth investors. Large-cap stocks generally do not produce outsize returns. This is because they generally correlate with the broader market. Once again, this is not a disadvantage at all for value investors, but many of today’s younger investors are looking for growth, not value.

 A more pertinent concern for some investors is that it is more difficult for large-cap companies to pivot their organization to take advantage of changing market conditions.

Investors can buy individual large-cap stocks or they can take advantage of the benefits of investing in mutual funds or exchange-traded funds (ETFs) that focus on large-cap stocks. This is a good way for novice investors to benefit from the benefits of this sector without having to pick and choose individual stocks.

Large-cap stocks deserve a place in every investor’s portfolio. However, like any investment they should not be the only stocks, particularly for younger investors who generally have a higher risk tolerance. For these investors, a path to wealth may include small cap and mid-cap stocks.

Although large-cap stocks are commonly thought of as being blue-chip investments, all of the high-flying FAANG stocks fall under the category of large-cap stocks.

There are many advantages that large-cap stocks offer. But there are a few drawbacks that depend on an investor’s personal investing style. For value investors, the fact that many of these stocks pay dividends can help investors generate income.

Novice investors or investors who are contributing to a 401(k) or other retirement accounts should consider investing in mutual funds or exchange-traded funds (ETFs). This allows them to get tax advantages while still getting exposure to this diverse sector.



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