Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Should I Invest in These 5 Big-Cap Shares?: Apple Inc. (AAPL) and More

LONDON — To me, capital growth and dividend income are equally important. Together, they provide the total return from any share investment, and, as you might expect, my aim is to invest in companies that can beat the total return delivered by the wider market.

To put that aim into perspective, the FTSE 100 has provided investors with a total return of around 3% per annum since January 2008.

Apple Inc. (NASDAQ:AAPL)Quality and value
If my investments are to outperform, I need to back companies that score well on several quality indicators and buy at prices that offer decent value.

So this series aims to identify appealing big-cap investment opportunities and during recent weeks I’ve looked at Apple Inc. (NASDAQ:AAPL), Wolseley plcCRH PLC (ADR) (NYSE:CRH) (LSE:CRH), ARM Holdings plc (ADR) (NASDAQ:ARMH), and Marks and Spencer Group Plc. This is how they scored on my total-return-potential indicators (each score in the table is out of a maximum of 5):

Share Apple Wolseley CRH ARM M&S
Dividend cover 5 4 5 5 4
Borrowings 5 4 1 5 2
Growth 5 4 2 5 3
Price to earnings 4 4 4 2 3
Outlook 4 4 3 5 2
Total (out of 25) 23 20 15 22 14

This collection of potential big-cap investments looks like a team of two halves, with Apple Inc. (NASDAQ:AAPL), Wolseley, and ARM in the leading pack, and CRH and M&S bringing up the rear.

At first glance, ARM Holdings and Apple Inc. (NASDAQ:AAPL) seem to have much in common, both operating in the technology sector. Closer inspection reveals some fundamental differences. For example, Apple Inc. (NASDAQ:AAPL) makes must-have electronic gizmos, and the success of its sales efforts depends on having new products hit the right fashion receptors of its (so far) loyal customers. That’s not certain to continue happening, despite past successes, and that realization could be behind recent share-price weakness.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.