These are frequently stocks of Blue-chip companies, which are well-established businesses with large cash reserves. It is worth noting that the larger size of large-cap companies does not imply faster growth. In fact, small stock companies tend to outperform them over longer time periods. However, large-cap stocks have the advantage of allowing investors to reap higher dividends than smaller and mid-cap company stocks, ensuring that capital is preserved over the long term.

Large-cap stocks, or large-capitalization stocks, are shares of publicly traded companies with a market capitalization typically exceeding $10 billion. These companies are often industry leaders with established reputations, substantial revenue streams, and a robust global presence. Examples include tech giants like Apple and Microsoft, and financial institutions like JPMorgan Chase.

Investing in large-cap stocks is generally considered less risky compared to small-cap or mid-cap stocks, due to their stability, strong balance sheets, and ability to weather economic downturns. They often pay dividends, providing income in addition to potential capital appreciation. While the growth potential might be lower than that of smaller companies, large-cap stocks are attractive for conservative investors seeking steady, long-term returns and reliable performance. These stocks are a cornerstone of many investment portfolios due to their stability and historical track records.