Owning Quality Large-Cap Stocks Doesn’t Have to Break The Bank
There are certainly a lot of advantages associated with investing in large-cap stocks. These are companies with a market capitalization of over $10 billion and play a huge role in determining the overall direction and trend of the indexes. Large-cap stocks can be strong core holdings for any portfolio since these companies are typically established businesses with reliable earnings. Just think about how successful a business has to be in order to reach such a large market capitalization.
Sometimes, investors have the misconception that large-cap stocks are expensive. While that’s certainly the case for shares of some companies, there are still plenty of great stocks to choose from at affordable share prices. That’s why we’ve put together the following overview of the top 3 large-cap stocks to buy under $100.
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DuPont De Nemours Inc (NYSE:DD)
Companies in the materials sector are often overlooked by investors, but there’s certainly a place for them in almost any portfolio. DuPont stands out as a great pick for exposure there, as it’s a company that provides materials, ingredients, and solutions for key markets like electronics, industrial, transportation, construction, water solutions, and worker safety. It’s always nice to find a company with a diversified business model, and DuPont certainly fits the bill. One of the more attractive components of DuPont’s business at this time is the electronics and industrial segment, as the company supplies materials and systems for consumer electronics and for the fabrication of semiconductors.
Some of DuPont’s most recognizable products include Kevlar, Tyvek, and Nomex, which are used in a variety of different applications and allow the company to take advantage of strong pricing power. DuPont also recently announced that it will be acquiring Rogers Corporation, which is a global leader in engineered materials and components, for $5.2 billion. This is great news for shareholders, as it will strengthen DuPont’s electronics and industrial business and help the company take advantage of the demand for things like electric vehicles and 5G networks.
Carrier Global Corp (NYSE:CARR)
Another strong large-cap name that investors should take a look at is Carrier Global Corp, which is a provider of heating, ventilation, air conditioning, refrigeration, fire, and security solutions. The HVAC Segment makes up the majority of the company’s sales, which includes products like air conditioners, heating systems, controls, and more. Considering how strong the housing market has been and how residential homeowners are spending big on improving their living spaces, it makes sense that Carrier has been benefitting from strong demand in HVAC replacement.
Investors should also note that the global pandemic has further increased the need for air filtration, cold-chain solutions, and air-quality assessment products from Carrier. The company just reported Q3 EPS that increased by 6% year-over-year and boosted its full-year outlook, which are additional positives to keep in mind. Finally, the company just increased its dividend by 50% and initiated a share buyback program back in July, which are more strong reasons to consider adding shares.
Apollo Global Management (NYSE:APO)
Alternative investment managers like Apollo have been strong performers in 2021, and that trend should continue going forward as people look for ways to generate returns outside of the fixed income market. The company raises capital for, invests in, and manages different alternative investment vehicles like private equity and credit activities, and its assets under management have been growing at an astounding pace. In the most recent quarter, Apollo reported AUM of $481.1 billion, up 11% year-over-year, along with Q3 distributable earnings of $1.71 per share, up 263% year-over-year.
Some analysts believe that it’s only a matter of time that Apollo Global Management will be added to a major equity index like the S&P 500, and the company’s recent conversion to full C-Corp status officially makes it eligible for inclusion. There’s also a lot to like about Apollo’s merger with Athene Holding, which makes it a huge player in the retirement industry. Investors should also note that this stock offers an attractive 2.79% dividend yield. The bottom line here is that Apollo Global Management is one of the strongest names in alternative investment management and a fantastic large-cap stock to consider adding at this time.