A lot of investors prefer to focus on the blue-chip share end of the local market as this is the most defensive and likely to hand out the most reliable dividends.
It’s also good to know which blue-chip shares have performed the best over the last year as one of the timeless rules of share markets globally is that winners tend to keep on winning.
Of course there are plenty of exceptions to this rule, but generally you’re much better off looking to buy stocks that are going up, than those that are going down. One common mistake inexperienced investors make is to get it the other way around.
So with this in mind, let’s take at the 10 best-performing large cap shares over the past 52 weeks according to Commsec.
Source: Commsec: Stats as at Sept 4, 2019.
Fortescue Metals Group Limited (ASX: FMG) is still top, despite shares actually falling over 15% since early July. Its bull run has been powered by an iron ore price that has climbed from around US$67 a tonne in July 2o18 to as high as US$120 a tonne in July 2019.
Evolution Ltd (ASX: EVN) is the gold miner that has benefited as the gold price has climbed from around US$1,200 a tonne in August 2018 to US$1,556 a tonne in August 2019. The falling Australian dollar has also lifted Evolution’s profit margins as mining costs are largely incurred in Australian dollars, before it sells gold in US dollars.
Newcrest Mining Limited (ASX: NCM) is a gold miner that has benefited from the same powerful tailwinds as Evolution.
Magellan Financial Group Ltd (ASX: MFG) is an international equities manger that is growing funds under management at a good clip due to some strong investment performance and operational capabilities. It also boasts operating leverage, a strong balance sheet, and high return on equity.
Charter Hall Group Ltd (ASX: CHC) is the commercial property investment and management group that pulled off a couple of big acquisitions in the last 12 months. Any company that boasts a handy yield and earnings growth will be appreciated by investors.
Afterpay Touch Group Ltd (ASX: APT) is the buy now, pay later business growing customers like nuts in the US and UK. It’s hard to go past this large-cap given the astonishing growth rates.
Wisetech Global Ltd (ASX: WTC) is the software-as-a-service star that impressed investors with a forecast for EBITDA growth of 34% – 42% on revenue growth of 26% – 32% in FY 2020. At $37 the stock is on a very high valuation and cannot afford to miss this guidance.
Meridian Energy Ltd (ASX: MEZ) pays a 3.8% yield as the NZ-based hydro electric power and wind farm business grows profits at a steady clip. It’s also benefiting as a flood of money is looking for a home in renewable energy investment.
Mercury NZ Ltd (ASX: MCY) is another NZ-based hydro-electric power business that is guiding for EBITDAF of NZ$485 million in FY 2020. The dividend is expected to be NZ$0.158cps to put it on an FX-adjusted yield around 2.8%.
Northern Star Resources Ltd (ASX: NST) is another gold mining benefiting as the gold price rises and Aussie dollar falls.
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The Motley Fool Australia owns shares of AFTERPAY T FPO and WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.