5 steady wealth creators Peter Lynch would pick in this market

The genius investor in his book ‘One Up on Wall Street’ talked at length about 6 stock categories and their unique traits to help investors pick wealth creators.

Of the 6 categories, the stalwarts are among Lynch’s most preferred. These large companies are considered safe wealth creators, with annual earnings growth of 10-20%.

Stalwarts are not exactly fast-growing, but are better than large slow-growers. More importantly, Lynch insists on having them in one’s portfolio, as they act as defenders in market downturns.

Cummins India and Berger Paints were two stalwarts as they grew 18% each annually in the last five years. Their 5-year median dividend payout was 56% and 36%, respectively.