DEFINITION of 'Stalwart'

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


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.

  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. Options & Futures

    Pick 401(k) Assets Like A Pro

    Professionals choose the options available to you in your plan, making your decisions easier.
  4. Professionals

    How to Launch a Wealth Management Firm

    Opening a wealth management firm is a complex process. By keeping these rules in mind, financial advisors can increase the odds of success.
  5. Investing News

    Why Are So Few Women in Finance? It's Complicated

    The number of women entering the finance world continues to decline for a variety of reasons but a game-changing new nonprofit challenges the status quo.
  6. Professionals

    Why Advisors Trust These Fund Firms the Most

    These fund firms are tops when it comes to being trusted choices for financial advisors. But Why?
  7. Economics

    Explaining Silo Mentality

    A silo mentality occurs when certain departments in an organization do not share information or knowledge with other departments.
  8. Economics

    5 Steps of a Bubble

    In the financial sense, a bubble refers to a situation where the price of an asset far exceeds its fundamental value.
  9. Insurance

    Warren Buffett: The Road To Riches

    Find out how he went from selling soft drinks to buying up companies and making billions of dollars.
  10. Professionals

    These Top Vanguard Funds Will Help You Diversify

    These Vanguard funds offer diversification and low fees for retirement savers.
  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. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  2. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  3. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  4. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  5. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
  6. Cost Of Funds

    The interest rate paid by financial institutions for the funds that they deploy in their business. The cost of funds is one ...
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!