The Motley Fool

Your instant 5 share large-cap portfolio

It’s not unusual or uncommon to see a small capitalisation stock sink by 50% or more – it’s a risk which comes with the territory. Likewise small stocks are much more likely to zip 50% higher too.

The fact that smaller companies have a higher risk of wiping out, is a major factor in why many investors remain firmly invested in the strongest companies listed on the ASX and don’t stray into the small-cap sector. It’s a sensible strategy for conservative portfolios, particularly (as is often the case for self-funded retirees) if you are completely reliant on the income from that portfolio to cover your living costs.

For investors looking for solid large-cap stocks, which are leaders in their respective industries, here are five stocks which are all amongst the 100 Leading Industrial Stocks on the ASX that in my opinion could be reasonable additions to a defensive, long-term portfolio.

Coca-Cola Amatil Ltd (ASX: CCL) – Now is arguably an exciting opportunity to buy this leading beverage company which is currently trading at levels not seen in the past five years.

Lend Lease Group (ASX: LLC) – While many stocks have been hitting new 52-week lows recently, property and infrastructure company Lend Lease has been hitting new 52-week highs. Given the group’s pipeline of opportunities and leading global status the group appears well positioned to continue to grow in the future.

Orica Ltd (ASX: ORI) – This might seem an odd choice given the firm’s exposure to the depressed global mining sector, however, it does remain a market leader and its products will still be required for mining operations. With the share price down nearly 20% for the calendar year, Orica could even find itself as a takeover target.

ResMed Inc. (CHESS) (ASX: RMD) – Boasting solid growth prospects within the respiratory health device sector and a share price that is flat over the past 12 months, an entry point at current levels to this high growth stock looks increasingly appealing.

Wesfarmers Ltd (ASX: WES) – As one of the leading blue-chip stocks on the ASX, Wesfarmers is probably already in many portfolios. Like ResMed, the share price has gone nowhere in the last year yet the company has made a number of clever moves – such as asset sales – which has the group positioned to strike should an acquisition opportunity arise.

NEW! The Motley Fool's #1 Dividend Pick

The above five stocks could be good additions to a diversified portfolio but there is another stock you should also consider...in fact, you don't want to miss it! Top Motley Fool investment advisor Scott Phillips has just named his #1 dividend-paying stock for 2014-2015. With solid growth prospects and a fat, fully franked dividend, this ASX stock could be a huge winner for your portfolio. Discover the name and code FREE by clicking here now.

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!