The Big Stocks Can Be a Wise Investment Choice

Written by The Dividend Guy on August 7, 2006

If you look at my stock list over on the left, you will see that pretty much all of my stocks in my dividend portfolio are what most people would consider the big stocks. These are companies that are massive - billions of dollars in sales and market cap.

Michael Sivy over at MONEY Magazine recently wrote about a study that indicates that investing in these big companies can be a wise investment choice.

The study tracked the performance of Fortune Magazine’s list of Most Admired Companies and the results show that investing in these stocks proves to be a worthwhile endeavor:

“A portfolio of these stocks outperformed the market by a substantial and statistically significant margin,” say authors Anderson and Smith. “This result is a clear challenge to the efficient market hypothesis, because Fortune’s picks are readily available public information.”

What am I going to do with this information? Not much as more often than not the stocks I focus on in my dividend portfolio are these big, well established companies. They are the ones that tend to show up on lists like Mergent’s Dividend Achievers and S&P’s Dividend Aristocrats. I think that there are some bargains out there with these stocks (Pfizer, Wal-Mart) and I will continue to add to my holdings as this continues.


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