Don’t Overlook These Canadian Large-Cap Stocks Just Because They’re Everywhere

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Written by Jed Lloren at The Motley Fool Canada

When investors look for stocks to add to their portfolios, many insist on finding smaller companies that have lots of room to grow. However, that’s not the best way to go about things. Small companies often face many difficulties that large-cap companies won’t have to face. For example, smaller companies may still need to prove their place in the market. In some cases, these companies may be offering new products or services that haven’t proven market fit (e.g., a demand from consumers).

However, large-cap stocks tend to be very established in their respective industries. These companies are often leaders in what they do and have a long history of business success. In addition, large-cap stocks tend to be very recognizable brands, with businesses that investors should be very familiar with. For those two reasons, I think large-cap stocks could continue to grow at reliable rates despite their size.

That’s why I think investors shouldn’t overlook Canadian large-cap stocks, even though they’re everywhere. In this article, I’ll discuss two great stocks that investors could consider adding to their portfolio today.

Invest in this large-cap stock today

A large-cap stock, by definition, is one that is valued at a market cap of $10 billion or more. Currently valued at just under $68 billion, Bank of Nova Scotia (TSX:BNS) comfortably makes that cut. This is one of the largest banks in Canada. Due to its inclusion in the Big Five, I’m very confident that Bank of Nova Scotia could continue to lead the Canadian banking industry for many years.

This company has also managed to establish itself internationally, with a particular focus on the Pacific Alliance. For those that don’t know, that’s a region which includes Chile, Columbia, Mexico, and Peru. It’s estimated that due to a rapidly growing middle-class population in those countries, their economies could grow at a faster rate than that of Canada and the U.S. over the coming years.

In terms of an investment, Bank of Nova Scotia’s dividend history is what stands out for me. The company has been paying shareholders a dividend for 190 consecutive years. That’s the kind of reliability that investors should be looking for in the stocks they hold in their portfolios.

Another great company for your portfolio

If you’re still looking for solid large-cap stocks to add to your portfolio, consider Telus (TSX:T). This is one of the Big Three telecom companies in Canada. In fact, Telus is known for operating the largest telecom network in the country. Its network coverage area accounts for 99% of the Canadian population.

Despite its outstanding presence in the telecom space, that’s not actually the most interesting part of this company’s business, in my opinion. Telus offers a telehealth service, MyCare. This is a free app that is downloadable by anyone and can be used to virtually visit with doctors. During the pandemic, services like this had become very popular, and they may be sticking around for the long haul. This could be a major catalyst for Telus stock in the future.

The post Don’t Overlook These Canadian Large-Cap Stocks Just Because They’re Everywhere appeared first on The Motley Fool Canada.

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Fool contributor Jed Lloren has positions in Bank Of Nova Scotia. The Motley Fool recommends Bank Of Nova Scotia and TELUS. The Motley Fool has a disclosure policy.