are defined as stocks with market capitalizations above $200 billion. As a result, there are certain advantages to buying mega-caps, such as the relative safety that comes with investing in the world’s largest businesses.Mega-cap stocks tend to generate steady profits during recessions, and many pay dividends to shareholders.These 3 mega-cap stocks have growth potential over the long-term, and currently pay solid dividends to shareholders. JPMorgan Chase ()JPMorgan was founded in 1799 as one of the first commercial banks in the U.S. Since then, it has merged or acquired more than 1,200 different institutions, creating a global banking behemoth with a $598 billion market capitalization and more than $170 billion in annual revenue. JPMorgan competes in every major segment of financial services, including consumer banking, commercial banking, home lending, credit cards, asset management and investment banking.JPMorgan Chase posted second quarter earnings on July 12th, 2024, and results were somewhat mixed. The bank beat on revenue, with the top line soaring almost 22% higher year-over-year to $50.2 billion, and beating estimates by $4.5 billion. Earnings, on the other hand, came to $4.40 per-share on an adjusted basis, which missed estimates by 11 cents.Net charge-offs in card are expected to be about 3.4%. Provision for credit losses in Q2 was $3.1 billion, with a net reserve build of $821 million, and net charge-offs of $2.2 billion. Net interest income came to $22.7 billion, slightly missing estimates, and down from $23.1 billion in the prior quarter. Still, higher rates helped net interest income rise from $21.8 billion a year ago.JPM has increased its dividend for 13 consecutive years. We see the payout ratio remaining under 35% for the foreseeable future. JPMorgan has been spending heavily on buybacks but is still able to increase the dividend meaningfully. We see the payout as very safe and a good choice for income investors given strong earnings growth. Johnson & Johnson ()Johnson & Johnson is a diversified health care company and a leader in the area of innovative medicines and medical devices Johnson & Johnson was founded in 1886 and employs nearly 132,000 people around the world. The company is projected to generate more than $89 billion in revenue this year.JNJ has increased its dividend each year for the past 62 years, making it a Dividend King.On May 31st, 2024, Johnson & Johnson completed its $13.1 billion purchase of cardiovascular medical device company Shockwave Medical. On July 17th, 2024, Johnson & Johnson announced second quarter results for the period ending June 30th, 2024. For the quarter, revenue grew 4.3% to $22.4 billion, which was $60 million more than expected. Adjusted earnings-per-share of $2.82 compared to $2.80 in the prior year and was $0.12 ahead of estimates.Excluding Covid-19 vaccine sales, the company’s revenue total grew 7.1% in the second quarter. Revenue for Innovative Medicines improved 5.5% on a reported basis, but was higher by 8.8% when excluding currency translation. Infectious Disease fell 13% excluding currency, mostly due to reduced Covid-19 vaccine revenue, though the year-over-year declines are becoming less pronounced. Oncology continues to act well, with revenue up almost 19% due to continued strength in Darzalex, which treats multiple myeloma.Johnson & Johnson offered revised guidance for 2024. The company now expects revenue in a range of $89.2 billion to $89.6 billion, up from $88.7 billion to $89.1 billion previously. Adjusted earnings-per-share is now projected to be in a range of $10.00 to $10.10.Johnson & Johnson has grown earnings over the past 10 years at a rate of 6.3%. The company managed to grow earnings before, during and after the last recession, showing that the company’s products are in demand regardless of market conditions. We expect earnings-per-share to grow at a rate of 6% per year through 2029 due to gains in revenue, acquisitions, and share repurchases. Toyota Motor Co. ()Toyota Motor Corporation is a multinational automotive conglomerate and Japan’s largest manufacturer of automobiles. The company was founded in 1933 and has grown to be a leader in the automotive industry, manufacturing well-known vehicles such as the Camry, Corolla, Highlander, Sienna, Yaris, Prius, and RAV4.Toyota Motor Corporation reported its fiscal 2025 first quarter earnings results in August. The company generated revenues of 11.8 trillion Yen during the period, which equates to revenues of ~$80 billion. This was 12% more than the revenues that Toyota was able to generate during the previous year’s period when denominated in Yen.Toyota generated operating profits of 1.31 trillion Yen, which was up by 17% versus the previous year’s period, which was the result of higher margins thanks to lower input costs and higher revenues. Toyota’s net profits grew as well versus the previous year’s period, and earnings-per-ADR (which are equal to 10 shares) totaled $6.70 during the quarter.Toyota’s major scale, and its operating efficiency provide competitive advantages over its peers. Its leadership role regarding hybrid vehicles has resulted in a positive reputation, on which Toyota could capitalize with electric vehicles in the future.TM stock currently yields 2.5%.More By This Author:
3 Mega-Cap Stocks For Long-Term Dividend Growth
