Stalwart

AAA

DEFINITION of 'Stalwart'

A description of companies that have large capitalizations and provide investors with slow but steady and dependable growth prospects.

BREAKING DOWN 'Stalwart'

The annual gain that would be viewed as the norm for investing in stalwarts is about 10% to 12%. Stalwarts will by no means become tenbaggers overnight, mainly because of their large capitalization, but they are usually a good source of fairly predictable returns.

Peter Lynch popularized this term in his book "One Up on Wall Street," where he shows that the price chart of a stalwart compares neither to a topographic map of Delaware nor to one of Mount Everest, but assumes a place somewhere in the middle.

RELATED TERMS
  1. Tenbagger

    An investment that appreciates to 10 times its initial purchase ...
  2. Large Cap - Big Cap

    A term used by the investment community to refer to companies ...
  3. Return

    The gain or loss of a security in a particular period. The return ...
  4. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  5. Growth Stock

    Shares in a company whose earnings are expected to grow at an ...
  6. Corporate Social Responsibility

    Corporate initiative to assess and take responsibility for the ...
Related Articles
  1. Insurance

    Market Capitalization Defined

    Find out the differences between mega-, large-, mid- and small-cap stocks and how each suits different investing styles.
  2. Entrepreneurship

    The Greatest Investors

    Read about the achievements of those who have mastered the art of investing.
  3. Mutual Funds & ETFs

    ETF Analysis: ProShares Large Cap Core Plus

    Learn information about the ProShares Large Cap Core Plus ETF, and explore detailed analysis of its characteristics, suitability and recommendations.
  4. Mutual Funds & ETFs

    ETF Analysis: PowerShares S&P 500 Low Volatility

    Find out about the PowerShares S&P 500 Low Volatility ETF, and learn detailed information about this fund that provides exposure to low-volatility stocks.
  5. Markets

    The 5 Biggest Canadian Insurance Companies

    Learn more about the insurance industry as a whole, how it functions in Canada, and the five largest Canada-based insurance companies.
  6. Mutual Funds & ETFs

    ETF Analysis: iShares Core High Dividend

    Discover how the iShares Core High Dividend ETF is managed, which index it tracks, and for whom it is most suitable as part of an overall portfolio allocation.
  7. Mutual Funds & ETFs

    ETF Analysis: iShares S&P 100

    Discover how the iShares S&P 100 offers an opportunity for investors to gain exposure to mega- and large-cap domestic company stocks.
  8. Stock Analysis

    Morgan Stanley's Profitablity: Bank on It (MS)

    The economy offers few certainties, but Morgan Stanley's profitability might be one of them.
  9. Stock Analysis

    3 Stocks You Wish You Had Bought in January

    Learn about three stocks investors wish they had bought in January of 2015 due to their performing better than the overall market.
  10. Budgeting

    The Millennial’s Guide to Personal Finance

    It's a Millennial money minefield out there! Navigate it with these money management tips.
RELATED FAQS
  1. What are the biggest risks associated with covered interest arbitrage?

    Covered interest arbitrage is when an investor buys into foreign currency that has an interest rate that will yield the investor ... Read Full Answer >>
  2. Why are the tangible assets of a company important to investors?

    A financial forecast is an estimation or projection of likely future income or revenue and expenses, while a financial plan ... Read Full Answer >>
  3. How does price elasticity affect my stock purchase decisions?

    The person who handles a corporation's short-term investments varies depending on the size of the company, the corporate ... Read Full Answer >>
  4. Which financial instruments have par values?

    Short-term investments can include a number of possible investment vehicles. Marketable equity securities are just one of ... Read Full Answer >>
  5. Should I invest in penny stocks or large cap stocks for my retirement portfolio?

    Large-cap stocks are a superior investment option for retirement portfolios compared to penny stocks. Most penny stocks are ... Read Full Answer >>
  6. Is it more beneficial to invest in a blue chip stock or a penny stock?

    Penny and blue-chip are terms used to describe a stock's valuations and statures. Penny stocks are generally the stocks of ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce ...
  2. Bear Market

    A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment ...
  3. Alligator Spread

    An unprofitable spread that occurs as a result of large commissions charged on the transaction, regardless of favorable market ...
  4. Tiger Cub Economies

    The four Southeast Asian economies of Indonesia, Malaysia, the Philippines and Thailand. Tiger cub economy indicates that ...
  5. Gorilla

    A company that dominates an industry without having a complete monopoly. A gorilla firm has large control of the pricing ...
  6. Elephants

    Slang for large institutions that have the funds to make high volumes trades. Due to the large volumes of stock that elephants ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!