Investing in large-cap companies is a safe and reliable way for investors to earn returns on their capital. Thanks to their size and market positions, these companies are typically less volatile than their smaller competitors, allowing them to produce better returns over time. Here are three of the best large-cap stocks to consider buying in the current market.
Procter & Gamble
With a 56-year history of raising its dividends and a market-leading position in the household goods industry, Procter & Gamble is perhaps one of the most historically reliable stocks in existence. The company’s focus on essential products also acts as a hedge against economic turmoil. Even in the worst of times, people will still be buying Procter & Gamble products to meet their basic household needs.
Archer Daniels Midland
Agriculture giant Archer Daniels Midland, often abbreviated as ADM, is another of the most reliable dividend-producing stocks in the American market. Although ADM has experienced some difficulties in recent years as a result of low commodity prices, the company is still a good overall bet for long-term dividend growth investing. The period of low commodity prices beginning in 2015 also demonstrated ADM’s ability to remain profitable in adverse market conditions. Overall, ADM represents an attractive income opportunity in the relatively stable agricultural sector.
Old Dominion Freight Line
A dominant force in the transportation industry, Old Dominion Freight Line has been able to take advantage of the explosive growth of eCommerce during the COVID-19 pandemic. The company is also positioned to grow as the economy reopens since goods will need to be moved to physical business locations all across the country. In the end, Old Dominion Freight Line is likely to be one of the few legacy companies that ultimately benefits from the onset of the pandemic, making it a good investment for the coming years.
These three large-cap stocks are among the best to include in a diversified investment portfolio as 2020 winds down, and 2021 begins. Although it’s difficult to say what the next year will bring, these large-cap companies offer a relatively safe haven for investors to realize strong growth as the American economy begins to return to normal.