When it comes to building long-term wealth, large-cap stocks are often some of the best stocks you can buy as the backbone of your portfolio. Large-cap stocks are defined as any company with a market cap of more than $10 billion. So naturally, these are well-established businesses with proven track records, strong cash flows, and in many cases the ability to weather economic cycles.
Therefore, because these companies are so well-established, often dominant in their industries and typically defensive, they’re often some of the most stable and reliable companies you can buy, which is why they’re so important for long-term investors.
The challenge, though, is that many large-cap companies come with high share prices, sometimes well over $100 per share. That can make it feel intimidating for investors who don’t have thousands of dollars to deploy all at once.
The good news, though, is that there are still plenty of high-quality, large-cap Canadian stocks trading below $50 to buy now that can offer both affordability and reliability.
So, if you’re looking to shore up your portfolio and buy reliable, well-established businesses, here are four large-cap stocks trading below $50 a share.
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Two top large-cap telecom stocks to buy now
When it comes to investing in large-cap stocks, the telecom sector is an excellent place to start. Telecom stocks are ideal long-term investments because they provide essential services, generate billions in cash flow, and have years of growth potential ahead as the population continues to expand.
And two of the best telecom stocks on the TSX, and unsurprisingly two of the best large-cap stocks to buy now, are BCE (TSX: BCE) and Telus (TSX: T).
BCE’s share price currently sits around $32, giving it a market cap of just over $30 billion and showing just how big of a company it is. Furthermore, the stock offers a current dividend yield of 5.4%, making it one of the best investments that passive income generators can buy now.
Meanwhile, Telus is trading just under $21 per share, giving it a market cap of roughly $32 billion. Furthermore, its dividend yield is currently sitting at more than 8%, one of the highest yields of any large-cap stock you can buy now.
A top utility stock and energy stock
In addition to telecom, the utility sector is another place to find high-quality large-cap stocks you can buy and hold forever. And while many utility stocks trade above $50 per share, one that still has a share price below $50 is AltaGas (TSX: ALA).
AltaGas is both a utility stock and a midstream energy company. Therefore, although it is still an incredibly reliable large-cap stock you can buy, it technically has slightly more risk than a pure utility stock, but also offers slightly more growth potential.
Today it trades at just over $42 a share and has a market cap north of $13 billion. Furthermore, it offers a current dividend yield of 3%.
Meanwhile, another massive large-cap stock to buy while it trades below $50 a share is Canadian Natural Resources (TSX: CNQ).
Canadian Natural Resources is the largest oil producer in Canada. Its operations are not only massive and well-diversified but also sustainable, making it one of the very best large-cap stocks you can buy in the energy sector.
Additionally, it also offers one of the best dividend yields in the energy sector when you factor in both the yield and its sustainability. Right now, with Canadian Natural Resources trading at just over $44 per share, its yield is sitting at 5.3%, showing why this $92 billion energy giant is one of the best large-cap stocks to buy now.
