Best dividend large-cap stocks to invest in 2026

Dividend-paying large-cap stocks are often favored by long-term investors for their combination of financial resilience, consistent income, and the ability to weather market downturns. These companies are typically leaders in their industries and have the scale and cash flow needed to support sustainable dividend payments over time.

Rheinmetall has shown impressive performance across both the defense and automotive sectors, which enables it to provide reliable and attractive dividends to its shareholders. UniCredit consistently delivers robust results in the banking industry while maintaining a strong commitment to returning value to shareholders through steady payouts. Saab distinguishes itself in the aerospace and defense fields through its cutting-edge technologies and reliable cash flow generation capabilities.

In addition to those, other strong picks include Kongsberg, Targa Resources, Imperial Oil, and mBank – each providing generous dividends and representing some of the most stable large-cap opportunities in today's market. For income-focused investors looking to build wealth steadily, these are some of the best dividend large-cap stocks to consider in 2025.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in stocks mentioned in this article.

Now, let`s take a closer look at each of the companies:

• Rheinmetall (DE:RHM)

  Rheinmetall AG is a leading German technology group dedicated to mobility and security, specializing in defense equipment and automotive components. Founded in 1889 and headquartered in Düsseldorf, Germany, the company has evolved into a key player in the European defense industry, particularly known for its armored vehicles, weapons systems, and ammunition. Rheinmetall plays a crucial role in supplying NATO and allied forces, benefiting significantly from the renewed focus on European defense capabilities and military modernization. Its automotive division also provides advanced components for the global vehicle market.

  Rheinmetall financial statements

  Analysts recommendation: 1.8

  Financial Health

  • Return on assets (ROA): 6.75%
  • Return on equity (ROE): 22.42%
  • Return on investment (ROI): 8.82%

  Profitability

  • Gross margin: 52.13%
  • Operating margin: 12.16%
  • Net profit margin: 7.64%

  Growth

  • EPS (past 5 years): 26.49%
  • EPS (current): 18.88
  • EPS estimate (next quarter): 2.23
  • EPS growth (this year): 8.5%
  • EPS growth (next year): 56.54%
  • EPS growth (next 5 years): 14.44%
  • EPS growth (quarter-over-quarter): 33.23%
  • Sales growth (past 5 years): 10.88%
  • Sales growth (quarter-over-quarter): 13.3%

  💡 Why invest in Rheinmetall?

  Rheinmetall stands as a pillar of European defense, offering investors a unique combination of industrial heritage and modern military relevance:

  • European Defense Leader: Rheinmetall is a primary beneficiary of increased German and European defense spending, securing major contracts for ammunition, tanks, and air defense systems amidst rising security concerns.
  • Ammunition Market Dominance: As one of the world's largest producers of large-caliber ammunition, the company is critically positioned to meet the urgent and sustained demand from Ukraine and NATO stockpiles.
  • Combat Vehicle Excellence: Renowned for the Leopard 2 main battle tank and Puma infantry fighting vehicle, Rheinmetall's armored systems are standard-bearers for modern ground combat capabilities.
  • Strong Order Backlog: Record-breaking order intake provides high revenue visibility for years to come, driven by long-term framework agreements with the German Bundeswehr and international customers.

  🐌 Key considerations before investing in Rheinmetall

  Despite its strategic importance, Rheinmetall faces challenges inherent to the defense sector and its dual-industry structure:

  • Export Control Regulations: Strict German arms export laws can limit sales opportunities to certain non-NATO countries, potentially hindering market expansion compared to competitors in less regulated jurisdictions.
  • Automotive Sector Volatility: The automotive division exposes the company to cyclical downturns in the car industry and the challenges of transitioning to electric mobility, potentially weighing on overall margins.
  • Supply Chain Pressures: Rapidly scaling up production to meet surging demand creates significant strain on supply chains, requiring efficient management of raw materials and skilled labor availability.
  • ESG Investment Concerns: Despite changing perceptions, some ESG-focused funds and investors may still exclude defense stocks, potentially limiting the stock's ownership base and valuation premium.

  Final thoughts on Rheinmetall

  Rheinmetall represents a compelling investment in the re-arming of Europe, backed by its dominance in ammunition and armored vehicles. While export restrictions and automotive exposure present risks, the company's central role in German and NATO defense strategies offers a strong growth trajectory. For investors seeking direct exposure to the European defense supercycle, Rheinmetall stands out as a key industrial asset.

• UniCredit (MI:UCG)

  UniCredit Commercial Bank is a leading European financial institution providing banking and financial services to individuals, businesses, and corporations. Founded in 1998 through the merger of several Italian banks, UniCredit is headquartered in Milan, Italy. With a strong presence in over a dozen countries, the bank plays a crucial role in the European financial sector, offering a wide range of services tailored to diverse customer needs.

  The bank`s core business focuses on retail and corporate banking, investment banking, asset management, and financial advisory services. UniCredit serves millions of clients across Europe, offering loans, credit services, payment solutions, and wealth management. With a strong emphasis on digital transformation and sustainability, UniCredit continues to expand its financial solutions while maintaining a solid risk management framework to support economic growth and stability.

  UniCredit financial statements

  Analysts recommendation: N/A

  Financial Health

  • Return on assets (ROA): 1.28%
  • Return on equity (ROE): 16.21%
  • Return on investment (ROI): N/A

  Profitability

  • Gross margin: 0%
  • Operating margin: 60.69%
  • Net profit margin: 43.13%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 6.61
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): 31.7%
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): N/A
  • Sales growth (past 5 years): N/A
  • Sales growth (quarter-over-quarter): 1.1%

  💡 Why invest in UniCredit?

  Like a skilled financial conductor orchestrating complex European banking operations, UniCredit creates value through strategic positioning and operational excellence:

  • European Banking Leadership: UniCredit operates as one of Europe`s largest banking institutions with significant market presence across Italy, Germany, and Central and Eastern Europe, providing diversified revenue streams.
  • Strategic Banking Restructuring: Recent comprehensive restructuring efforts have substantially improved the bank`s profitability metrics, capital ratios, and operational efficiency while strengthening its competitive market position.
  • Consistent Capital Distribution: The bank`s well-capitalized balance sheet and improved financial performance enable consistent capital returns to shareholders through regular dividends and strategic share buyback programs.
  • Digital Technology Investment: UniCredit invests heavily in fintech partnerships and digital banking infrastructure, enhancing customer experience while driving operational cost efficiencies and competitive advantages in European markets.

  🐌 Key considerations before investing in UniCredit

  Even the most strategically positioned European banks face headwinds from economic cycles and regulatory pressures that can impact their ability to deliver consistent returns:

  • European Economic Vulnerability: UniCredit`s extensive exposure to European economies makes it vulnerable to regional financial downturns, interest rate fluctuations, and sovereign debt concerns that impact lending volumes.
  • Strict Regulatory Pressure: Stricter European Union banking regulations and ECB oversight impose significant capital requirements and operational constraints that limit strategic flexibility and profitability.
  • Credit Risk Management: The bank`s substantial loan portfolio, including corporate and sovereign debt exposures, presents ongoing default risks during economic slowdowns that require continuous provisioning.
  • European Banking Competition: UniCredit faces intense competition from established European banking giants and innovative fintech challengers, pressuring margins while requiring continuous technology investment.

  Final thoughts on UniCredit

  UniCredit`s leadership position in European banking and successful restructuring efforts create compelling opportunities in European financial services. However, investors must consider economic sensitivity and regulatory complexities that characterize the European banking environment. Like a master conductor leading a complex financial orchestra, UniCredit`s ability to harmonize diverse market operations while maintaining operational excellence becomes increasingly valuable as European banking evolves.

• Saab (ST:SAAB-B)

  Saab AB is a premier Swedish defense and aerospace company specializing in advanced fighter aircraft, naval systems, and electronic warfare technologies for NATO allies and international defense customers worldwide. Founded in 1937 and headquartered in Stockholm, Sweden, the company has evolved from an aircraft manufacturer into a comprehensive defense technology provider with cutting-edge capabilities in military aviation, submarine systems, and radar technologies. The company has demonstrated strong growth in defense contracts, particularly benefiting from increased European defense spending and NATO modernization programs following heightened geopolitical tensions in Northern Europe and the Baltic region.

  The company`s core business revolves around the Gripen fighter aircraft, advanced radar and sensor systems, submarine technologies, missile systems, and integrated command and control solutions for military operations. Saab`s products are integral to critical defense capabilities including air defense networks, electronic warfare, maritime security, and battlefield management systems used by NATO forces and allied nations. With rising global defense expenditure and increasing demand for advanced military technologies, Saab is strategically positioned to capitalize on European defense modernization programs and the growing need for sophisticated defense systems in response to evolving security threats across NATO`s northern and eastern flanks.

  Saab financial statements

  Analysts recommendation: N/A

  Financial Health

  • Return on assets (ROA): 3.99%
  • Return on equity (ROE): 13.55%
  • Return on investment (ROI): N/A

  Profitability

  • Gross margin: 22%
  • Operating margin: 8.59%
  • Net profit margin: 7.18%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 9.62
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): -1.1%
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): N/A
  • Sales growth (past 5 years): N/A
  • Sales growth (quarter-over-quarter): 17.2%

  💡 Why invest in Saab?

  Like a precision-engineered Gripen fighter aircraft that combines agility with advanced capabilities, Saab demonstrates several compelling strengths that make it an attractive investment in the expanding European defense sector:

  • Nordic Defense Leadership: Saab holds dominant market positions in fighter aircraft, radar systems, and electronic warfare across Northern European defense markets, creating substantial competitive advantages and high barriers to entry.
  • Defense Technology Innovation: The company invests approximately 25% of annual revenue into defense R&D, developing next-generation military technologies in electronic warfare, autonomous systems, and stealth capabilities.
  • NATO Spending Beneficiary: Saab benefits from NATO`s commitment to increase defense spending to 2% of GDP and widespread military modernization programs across European allied nations driven by geopolitical tensions.
  • Defense Export Strategy: The company has successfully expanded its global defense footprint beyond Europe with strategic military partnerships in Asia, Middle East, and the Americas, creating diversified revenue streams.

  🐌 Key considerations before investing in Saab

  However, like navigating a fighter jet through hostile airspace where multiple threats can compromise mission success, Saab faces several significant challenges that defense investors must carefully evaluate:

  • European Budget Volatility: Heavy reliance on European defense spending makes the company vulnerable to budget cuts, political changes, and shifts in military priorities that could impact contract values and growth prospects.
  • Defense Sector Competition: Saab faces intense competition from larger defense contractors like Lockheed Martin, BAE Systems, and Thales, which have superior resources, global reach, and established military relationships.
  • Defense Export Restrictions: As a Swedish defense contractor, Saab faces strict export controls, arms transfer regulations, and potential political restrictions that can limit international sales opportunities.
  • Complex Program Execution: Major defense development programs like fighter aircraft and submarine systems involve significant technical challenges, potential delays, and cost overruns that could impact profitability.

  Final thoughts on Saab

  Saab`s leadership in Nordic defense systems, technological innovation in military capabilities, and strategic positioning within European security frameworks create compelling opportunities for investors seeking exposure to the growing defense technology sector. However, the company`s exposure to defense budget volatility, competitive pressures, export restrictions, and complex program execution risks require careful evaluation of the specialized dynamics in defense markets. Like a sophisticated radar system that detects threats beyond the horizon, Saab combines technological excellence with strategic vision to navigate geopolitical complexities while delivering advanced defense solutions for NATO allies and partner nations worldwide.

• Kongsberg (OL:KOG)

  Kongsberg Gruppen is a premier Norwegian defense and technology company specializing in advanced weapon systems, military electronics, and defense solutions for NATO allies and international defense customers worldwide. Founded in 1814 and headquartered in Kongsberg, Norway, the company has evolved from a traditional defense contractor into a global leader in missile systems, remote weapon stations, and advanced military technologies. The company has demonstrated strong growth in defense contracts, particularly benefiting from increased European defense spending and NATO modernization programs following heightened geopolitical tensions.

  The company`s defense portfolio encompasses advanced missile systems including Naval Strike Missile (NSM) and Joint Strike Missile (JSM), remote weapon stations for military vehicles, air defense systems, and specialized defense electronics for military platforms. Kongsberg`s products are integral to critical defense capabilities including anti-ship warfare, air defense networks, and vehicle protection systems used by NATO forces and allied nations. With rising global defense expenditure and increasing demand for advanced military technologies, Kongsberg is strategically positioned to capitalize on European defense modernization programs and the growing need for sophisticated weapon systems.

  Kongsberg financial statements

  Analysts recommendation: N/A

  Financial Health

  • Return on assets (ROA): 6.85%
  • Return on equity (ROE): 36.74%
  • Return on investment (ROI): N/A

  Profitability

  • Gross margin: 59%
  • Operating margin: 15.2%
  • Net profit margin: 12.93%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 8
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): 25.3%
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): N/A
  • Sales growth (past 5 years): N/A
  • Sales growth (quarter-over-quarter): 11.6%

  💡 Why invest in Kongsberg?

  Like a precision-guided missile that strikes its target with unerring accuracy, Kongsberg demonstrates several compelling strengths that make it an attractive investment in the expanding European defense sector:

  • NATO Defense Integration: Kongsberg`s missile systems and remote weapon stations are deeply integrated into NATO defense infrastructure, creating long-term revenue streams through procurement programs and strategic partnerships.
  • Norwegian Defense Leadership: The company holds dominant market positions in anti-ship missiles, vehicle protection systems, and defense electronics across European markets, providing substantial competitive advantages.
  • Defense Spending Tailwinds: Kongsberg benefits from NATO`s commitment to increase defense spending to 2% of GDP and widespread military modernization programs across European allied nations driven by tensions.
  • Cutting-Edge Defense Tech: The company`s expertise in precision strike capabilities, autonomous systems, and integrated defense solutions creates significant technological advantages and premium pricing power.

  🐌 Key considerations before investing in Kongsberg

  However, like operating advanced weapon systems in contested battlespaces where multiple threats can compromise mission success, Kongsberg faces several significant challenges that defense investors must carefully evaluate:

  • Defense Budget Volatility: Heavy reliance on European defense spending makes the company vulnerable to budget cuts, political changes, and shifts in military priorities that could impact contract values and growth.
  • Export Control Restrictions: As a defense contractor, Kongsberg faces strict export controls, arms transfer regulations, and potential sanctions that can limit international sales opportunities and create compliance challenges.
  • Project Management Challenges: Complex military development programs and large-scale defense contracts face potential delays, cost overruns, and technical challenges that could impact profitability and ministry relationships.
  • Global Defense Competition: Kongsberg faces intense competition from established defense contractors like Raytheon, MBDA, and Lockheed Martin, which have superior resources, global reach, and established relationships.

  Final thoughts on Kongsberg

  Kongsberg`s leadership in European defense systems, strategic integration with NATO military capabilities, and advanced weapon technologies create compelling opportunities for investors seeking exposure to the growing European defense sector. However, the company`s exposure to defense budget volatility, export restrictions, program execution risks, and competitive pressures require careful evaluation of the complex dynamics in defense markets. Like a battle-hardened commander who combines tactical precision with strategic vision, Kongsberg leverages its technological excellence and defense relationships to navigate geopolitical complexities while delivering mission-critical systems for allied forces worldwide.

• Targa Resources (NYSE:TRGP)

  Targa Resources is a leading provider of midstream energy services, specializing in the gathering, processing, storage, and transportation of natural gas and natural gas liquids (NGLs). Founded in 2005, the company is headquartered in Houston, Texas, and has grown into one of the largest independent midstream operators in North America. With an extensive infrastructure network, Targa plays a critical role in ensuring the efficient movement of energy products from production sites to end markets.

  The company`s core business revolves around natural gas processing, NGL fractionation, and logistics services. Targa operates an expansive network of pipelines, storage facilities, and export terminals, facilitating the transportation of key energy commodities. Focused on growth and sustainability, the company continues to expand its asset base while integrating advanced technology to enhance operational efficiency.

  Targa Resources financial statements

  Analysts recommendation: 1.3

  Financial Health

  • Return on assets (ROA): 8.45%
  • Return on equity (ROE): 49.85%
  • Return on investment (ROI): 8.31%

  Profitability

  • Gross margin: 35.99%
  • Operating margin: 20.16%
  • Net profit margin: 9.95%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 7.42
  • EPS estimate (next quarter): 2.3
  • EPS growth (this year): 25.7%
  • EPS growth (next year): 13.3%
  • EPS growth (next 5 years): 24.85%
  • EPS growth (quarter-over-quarter): 25.96%
  • Sales growth (past 5 years): 13.89%
  • Sales growth (quarter-over-quarter): 7.8%

  💡 Why invest in Targa Resources?

  Targa combines large-scale midstream infrastructure with NGL processing and logistics to offer fee-based cash flow exposure while pursuing accretive growth projects:

  • Midstream Scale Advantage: Targa operates a broad gathering, processing, storage and pipeline network across core U.S. shale basins, delivering largely fee-based revenues and scale advantages that smooth cash flow volatility.
  • NGL Integration Benefits: Integrated fractionation, logistics and export capabilities let Targa capture incremental value along the liquids chain, improving realized margins on NGLs and providing commercial optionality.
  • Growth Discipline Focus: A disciplined capital program targets high-return expansions and connectivity projects that increase throughput and basin optionality while preserving leverage targets and cash distribution flexibility.
  • Contracted Volume Security: Long-term agreements and deep producer relationships underpin a meaningful portion of contracted throughput, providing predictable revenue backstops and reducing exposure to commodity cycles.

  🐌 Key considerations before investing in Targa Resources

  Targa`s midstream exposure carries execution, commodity and regulatory risks that can pressure short-term cash flow and project timelines:

  • Commodity Price Exposure: Despite fee-based components, a non-trivial portion of economic value depends on liquids and natural gas price spreads and basis differentials that can compress realized netbacks and reduce cash.
  • Project Execution Risks: Infrastructure expansions and fractionation projects carry construction, permitting and commissioning risks where delays or cost overruns can defer expected returns and depress growth visibility.
  • Pipeline Regulatory Risk: Tighter environmental regulations, pipeline safety rules and permitting friction can increase compliance costs, slow new project approvals, and alter project economics for midstream expansions.
  • Midstream Competitive Pressure: Regional and national midstream peers, plus integrated energy companies, compete for throughput and commercial terms, potentially forcing contractual concessions that reduce near-term margin capture.

  Final thoughts on Targa Resources

  Targa`s scale, integrated NGL capabilities and disciplined project focus create a compelling long-term midstream case, but execution, commodity basis risk and regulatory uncertainty can compress near-term cash flows. Investors should assess these trade-offs and the company`s capital prioritization. Overall, Targa suits those seeking fee-based energy infrastructure with some commodity linkage.

• Mitsubishi UFJ Financial Group (T:8306)

  Mitsubishi UFJ Financial Group, Inc. (MUFG) is Japan's largest financial group and the world's second-largest bank holding company, headquartered in Tokyo, Japan. Founded in 1880, MUFG operates as a comprehensive financial services provider with a global presence spanning over 50 countries and regions. The company was formed through the merger of Mitsubishi Tokyo Financial Group and UFJ Holdings in 2005, creating one of the most influential financial institutions in Asia with extensive banking, securities, and asset management operations.

  The company's core operations encompass commercial banking, trust banking, securities services, credit cards, and international finance through its major subsidiaries including MUFG Bank, Mitsubishi UFJ Trust and Banking Corporation, and Mitsubishi UFJ Securities. MUFG provides a comprehensive range of financial services including loans, deposits, fund transfers, hedging, investment services, and financing for automotive and consumer goods sectors. The group also engages in trading fixed-income instruments, currencies, equities, and offers investment products such as mutual funds, structured bonds, and notes, alongside insurance and treasury services.

  Mitsubishi UFJ Financial Group financial statements

  Analysts recommendation: N/A

  Financial Health

  • Return on assets (ROA): 0.33%
  • Return on equity (ROE): 6%
  • Return on investment (ROI): N/A

  Profitability

  • Gross margin: 0%
  • Operating margin: 49.89%
  • Net profit margin: 22.81%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 164.57
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): 8.7%
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): N/A
  • Sales growth (past 5 years): N/A
  • Sales growth (quarter-over-quarter): 15.1%

  💡 Why invest in Mitsubishi UFJ Financial Group?

  Mitsubishi UFJ Financial Group demonstrates strong competitive advantages in the global banking sector:

  • Global Banking Leadership: MUFG maintains its position as Japan's largest financial group and the world's second-largest bank holding company with significant market share and global reach.
  • Comprehensive Financial Services: The company offers integrated banking, securities, trust, and asset management services, providing complete financial solutions to diverse customer segments.
  • Strong Domestic Market Position: MUFG's extensive branch network and customer base in Japan provide stable retail and commercial banking revenue streams.
  • International Banking Network: Global operations across over 50 countries provide geographic diversification and exposure to growing international markets.

  🐌 Key considerations before investing in Mitsubishi UFJ Financial Group

  Mitsubishi UFJ Financial Group faces several challenges in the competitive banking landscape:

  • Economic Sensitivity Risk: Banking operations are highly sensitive to economic cycles, interest rate changes, and economic conditions in Japan and global markets.
  • Regulatory Compliance Burden: Stringent banking regulations and compliance requirements across multiple jurisdictions increase operational costs and limit business flexibility.
  • Credit Risk Exposure: Banking operations involve significant credit risk from loan portfolios, particularly during economic downturns or in volatile markets.
  • Competitive Market Pressure: Intense competition from other global banks and financial institutions pressures market share and profitability across all segments.

  Final thoughts on Mitsubishi UFJ Financial Group

  Mitsubishi UFJ Financial Group's global banking leadership, comprehensive financial services, and strong domestic market position provide solid foundations for continued growth in the financial services sector. However, the company faces challenges from economic sensitivity, regulatory requirements, credit risk exposure, and competitive pressures. MUFG must maintain its focus on digital transformation, risk management, and strategic international expansion to sustain its competitive position and deliver consistent returns to shareholders in the evolving global banking landscape.

• Sumitomo Mitsui Financial Group (T:8316)

  Sumitomo Mitsui Financial Group, Inc. is a Japanese financial holding company headquartered in Tokyo, Japan, operating as one of Japan's largest banking groups with a global presence in multiple countries. Founded in December 2002, SMFG was established through the merger of Sumitomo Bank and Sakura Bank, creating a comprehensive financial services provider with deep historical roots dating back to the Mitsui and Sumitomo zaibatsu. The company operates primarily through its main subsidiary, Sumitomo Mitsui Banking Corporation (SMBC), which serves as the core banking entity within the group structure.

  The company's business operations encompass wholesale banking, retail banking, international banking, and global markets through a network of approximately 800 offices worldwide. SMFG provides a comprehensive range of financial services including commercial banking, corporate lending, investment banking, asset management, securities trading, leasing, consumer finance, and credit card services. The group serves individual customers, small and medium-sized enterprises, large corporations, and institutional clients across Japan and international markets, offering solutions such as loans, deposits, trade finance, foreign exchange, treasury services, and advisory consulting.

  Sumitomo Mitsui Financial Group financial statements

  Analysts recommendation: N/A

  Financial Health

  • Return on assets (ROA): 0.24%
  • Return on equity (ROE): 4.8%
  • Return on investment (ROI): N/A

  Profitability

  • Gross margin: 0%
  • Operating margin: 49.31%
  • Net profit margin: 20.97%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 358.74
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): 60.1%
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): N/A
  • Sales growth (past 5 years): N/A
  • Sales growth (quarter-over-quarter): 5.1%

  💡 Why invest in Sumitomo Mitsui Financial Group?

  Like a fortress in Japan's financial landscape, Sumitomo Mitsui Financial Group demonstrates compelling strengths:

  • Market Leadership Position: Strong position as Japan's second-largest banking group provides significant scale advantages and competitive stability in domestic banking.
  • Business Diversification Strategy: Comprehensive diversification across wholesale, retail, international banking, and global markets reduces dependency on single revenue streams.
  • Capital Foundation Strength: Robust capital base and strong risk management practices ensure regulatory compliance and financial stability during economic volatility.
  • International Expansion Focus: Strategic international expansion and growing presence in Asian markets provide growth beyond Japan's mature banking sector.

  🐌 Key considerations before investing in Sumitomo Mitsui Financial Group

  Like navigating Japan's economic challenges, Sumitomo Mitsui Financial Group faces significant headwinds:

  • Interest Rate Environment: Exposure to Japan's low-interest-rate environment and economic stagnation limits net interest margins and profitability growth potential.
  • Market Concentration Risk: Concentration in Japanese market makes company vulnerable to domestic downturns, demographic challenges, and regulatory changes.
  • Competitive Pressure Intensity: Increasing competition from domestic banks and international fintech companies pressures traditional banking revenue streams and market share.
  • Credit Risk Exposure: Corporate lending portfolio requires continuous monitoring and can lead to elevated non-performing loans during economic recessions.

  Final thoughts on Sumitomo Mitsui Financial Group

  Sumitomo Mitsui Financial Group's established position as a major Japanese banking institution, diversified business model, and strong capital foundation provide solid grounds for continued stability in the financial services sector. However, the company faces challenges from Japan's difficult economic environment, competitive pressures, regulatory requirements, and credit risk exposure. SMFG must focus on digital innovation, international expansion, and operational efficiency to maintain its competitive edge and deliver sustainable returns to shareholders in the evolving global banking landscape.

• HOCHTIEF (DE:HOT)

  HOCHTIEF AG is a global infrastructure and construction services provider active in Europe, North America, Australia, and the Asia-Pacific region. Founded in 1874 and headquartered in Essen, Germany, the company undertakes large-scale commercial, civil, and transport infrastructure projects worldwide. In the first half of the year, HOCHTIEF delivered operational net profit of 355 million, an 18% increase versus the same period last year, while group sales rose 25% to 18.4 billion.

  HOCHTIEF`s core business is organized into four principal segments: Turner in the U.S., CIMIC Group in the Australia-Pacific region, Engineering & Construction in Europe and North America, and a 20% stake in toll-road operator Abertis. Turner delivers complex facility construction and management services across healthcare, education, airports, sports venues, and data centres. CIMIC focuses on infrastructure, resources, and rail services, while the Engineering & Construction division handles building and civil projects throughout Europe and North America.

  HOCHTIEF financial statements

  Analysts recommendation: N/A

  Financial Health

  • Return on assets (ROA): 1.82%
  • Return on equity (ROE): 100.88%
  • Return on investment (ROI): N/A

  Profitability

  • Gross margin: 25.83%
  • Operating margin: 3.53%
  • Net profit margin: 2.25%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 11.31
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): 22.4%
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): N/A
  • Sales growth (past 5 years): N/A
  • Sales growth (quarter-over-quarter): 9.1%

  💡 Why invest in HOCHTIEF?

  HOCHTIEF AG offers several compelling reasons to consider investing:

  • Global Operations Diversification: With major footprints across four continents and multiple business segments, HOCHTIEF mitigates regional downturns and captures growth opportunities in varied international markets.
  • Strong Financial Growth: The company delivered impressive double-digit sales growth and nearly 50% net profit increase in 2025, demonstrating exceptional operational execution and effective pricing power across key markets.
  • Market Leadership Excellence: Turner and CIMIC hold leading positions in their respective regions, giving HOCHTIEF a significant competitive edge in securing high-value, complex infrastructure projects with strong margins.
  • Project Backlog Visibility: A strengthened order book driven by long-term PPP and concession contracts provides excellent revenue transparency and underpins medium-term growth prospects with predictable cash flows.

  🐌 Key considerations before investing in HOCHTIEF

  However, prospective investors should weigh the following challenges:

  • Industry Cyclicality Exposure: Construction demand ebbs and flows with broader economic cycles, making revenue and profit highly sensitive to economic downturns, recession risks, and changing market conditions that impact operations.
  • Capital Investment Requirements: Large infrastructure projects necessitate significant upfront investment and leverage, which can strain balance-sheet flexibility if financing conditions tighten or interest rates rise.
  • Regulatory Political Risks: Dependence on public-private partnerships and government contracts exposes the company to policy shifts, permitting delays, and compliance hurdles that can affect project approvals.
  • Global Integration Complexities: Managing a diverse global portfolio including its Abertis stake and multiple international divisions can introduce execution risks and operational inefficiencies that may impact performance.

  Final thoughts on HOCHTIEF

  HOCHTIEF AG stands out as a global leader in infrastructure and construction, underpinned by diversified operations, strong 2025 financial performance, and clear backlog visibility. Its leadership in key regions and market segments supports a resilient medium-term outlook. However, investors should weigh the inherent cyclicality of the construction industry, significant capital demands, and regulatory complexities when considering HOCHTIEF for long-term portfolios.

• Mizuho Financial Group (T:8411)

  Mizuho Financial Group, Inc. is a Japanese bank holding company headquartered in Tokyo, Japan, primarily engaged in banking, trust banking, securities, and other financial services. Founded in 2000 through the consolidation of several financial institutions, Mizuho has established itself as one of Japan's largest banking groups with a global presence spanning multiple countries. The company operates as a comprehensive financial services provider through its major subsidiaries including Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Capital.

  The company's core operations encompass retail banking, corporate banking, investment banking, trust services, and asset management through its network of approximately 880 offices worldwide. Mizuho provides a comprehensive range of financial services including loans, deposits, online banking, cash management solutions, currency transactions, trade finance, custody services, and research consulting. The group also offers trust services, securitization and structured finance, stock transfer agency, private banking, and information technology-related services, serving millions of individual and corporate customers globally.

  Mizuho Financial Group financial statements

  Analysts recommendation: N/A

  Financial Health

  • Return on assets (ROA): 0.36%
  • Return on equity (ROE): 9.28%
  • Return on investment (ROI): N/A

  Profitability

  • Gross margin: 0%
  • Operating margin: 41.97%
  • Net profit margin: 25.49%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 402.99
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): 46.9%
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): N/A
  • Sales growth (past 5 years): N/A
  • Sales growth (quarter-over-quarter): 6.4%

  💡 Why invest in Mizuho Financial Group?

  Mizuho Financial Group demonstrates strong competitive advantages in the Japanese banking sector:

  • Major Banking Group: Mizuho maintains its position as one of Japan's largest banking groups with significant market share and extensive domestic branch network.
  • Comprehensive Financial Services: The company offers integrated banking, trust, securities, and asset management services, providing complete financial solutions to diverse customer segments.
  • Global Banking Network: International operations across multiple countries provide geographic diversification and exposure to global banking markets.
  • Technology Investment: Significant investment in digital banking and information technology services enhances operational efficiency and customer experience.

  🐌 Key considerations before investing in Mizuho Financial Group

  Mizuho Financial Group faces several challenges in the competitive banking landscape:

  • Economic Sensitivity Risk: Banking operations are highly sensitive to economic cycles, interest rate changes, and economic conditions in Japan and global markets.
  • Regulatory Compliance Burden: Stringent banking regulations and compliance requirements across multiple jurisdictions increase operational costs and limit business flexibility.
  • Credit Risk Exposure: Banking operations involve significant credit risk from loan portfolios, particularly during economic downturns or in volatile markets.
  • Domestic Market Pressure: Intense competition from other Japanese banks and financial institutions pressures market share and profitability in domestic markets.

  Final thoughts on Mizuho Financial Group

  Mizuho Financial Group's position as a major Japanese banking group, comprehensive financial services, and global network provide solid foundations for continued growth in the financial services sector. However, the company faces challenges from economic sensitivity, regulatory requirements, credit risk exposure, and domestic competition. Mizuho must maintain its focus on digital transformation, risk management, and strategic international expansion to sustain its competitive position and deliver consistent returns to shareholders in the evolving global banking landscape.

• mBank (WA:MBK)

  mBank S.A. is one of Poland`s leading commercial banks, serving both retail and corporate customers through innovative digital banking solutions and traditional branch services. Founded in 1986 and headquartered in Warsaw, the bank is a subsidiary of Commerzbank AG and has established itself as a pioneer in digital banking transformation within the Polish financial sector. The bank has demonstrated strong financial performance with consistent profitability and has been recognized for its technological innovation and customer service excellence in the competitive Polish banking market.

  The bank operates comprehensive retail banking services including personal accounts, mortgages, and consumer loans for individual customers across Poland and neighboring markets. The company provides corporate banking solutions for small and medium enterprises and large corporations with specialized financial products tailored to diverse business needs. Through digital transformation initiatives, mBank offers advanced mobile banking applications, online services, and fintech partnerships that enhance customer experience and operational efficiency.

  mBank financial statements

  Analysts recommendation: 2.2

  Financial Health

  • Return on assets (ROA): 1.4%
  • Return on equity (ROE): 19.51%
  • Return on investment (ROI): 4.2%

  Profitability

  • Gross margin: 0%
  • Operating margin: 61.09%
  • Net profit margin: 28.98%

  Growth

  • EPS (past 5 years): 6.3%
  • EPS (current): 81.95
  • EPS estimate (next quarter): 16.8
  • EPS growth (this year): 45.9%
  • EPS growth (next year): 8.7%
  • EPS growth (next 5 years): 9.5%
  • EPS growth (quarter-over-quarter): 14.2%
  • Sales growth (past 5 years): 5.8%
  • Sales growth (quarter-over-quarter): 1%

  💡 Why invest in mBank?

  Like a modern financial fortress that combines traditional banking strength with cutting-edge digital innovation, mBank demonstrates compelling advantages in the evolving Polish banking sector:

  • Digital Banking Pioneer: mBank leads Polish digital banking transformation with award-winning mobile apps and online services that attract tech-savvy customers and reduce operational costs significantly through innovation.
  • Leading Digital Position: The bank maintains a solid market share in Polish retail and corporate banking with diversified revenue streams and established customer relationships across multiple business segments.
  • German Commerzbank Support: As a subsidiary of Commerzbank AG, mBank benefits from international expertise, capital support, and access to advanced banking technologies and comprehensive risk management systems.
  • Corporate Banking Growth: The bank`s corporate banking division shows strong growth potential with expanding SME services and specialized solutions for Poland`s growing business sector and economic development.

  🐌 Key considerations before investing in mBank

  However, like navigating turbulent financial waters where regulatory storms and competitive pressures create challenges, mBank faces several risks that investors must carefully evaluate:

  • Polish Regulatory Environment: Polish banking sector faces increasing regulatory scrutiny and potential changes in banking taxes or mortgage regulations that could impact profitability and operational flexibility significantly.
  • Banking Intense Competition: The Polish banking market is highly competitive with both domestic banks and international players competing aggressively on pricing, services, and digital offerings for customers.
  • Domestic Economic Dependence: The bank`s performance is closely tied to Polish economic conditions, interest rates, and consumer confidence, making it vulnerable to economic downturns or significant policy changes.
  • European Foreign Exchange: As a subsidiary of German Commerzbank, mBank faces currency exchange risks and potential impacts from European banking regulations and economic conditions across multiple regional markets.

  Final thoughts on mBank

  mBank`s digital banking leadership, strong market position, and Commerzbank backing create compelling opportunities for investors seeking exposure to Poland`s growing financial sector. However, the bank`s exposure to regulatory changes, intense competition, economic sensitivity, and foreign exchange risks require careful evaluation of the challenges in Polish banking. Like a skilled navigator who combines traditional banking wisdom with modern digital tools, mBank offers balanced potential for investors who understand both the opportunities and complexities of the Polish financial market.

If you are interested in other stock categories, check out my other lists of the best dividend large-cap stocks.