It can be difficult to invest in the stock market. It can be even more so if you don’t know where to start or when the stock market hours are so you can talk to someone. However, knowing which stocks are the best to start off with will help ease the tension.
Your best option is to think “big.” By this, we mean to invest in companies that are established and stable. A few of these include the giant tech companies like the five we have listed below.
As you will see, these companies are great for the beginner investor. Not only do they provide stability, but they also provide solid financial earnings and growth in stock price.
With that said, let’s take a look at five good stocks for a beginner investor to buy in today’s stock market.
From the time that Google was acquired by Alphabet, it has continued to grow financially. Not only that, but it has remained strong and continues to have an advantage that generates huge margins and capable of resisting pressure from competitors.
Google stock is also able to provide continued growth for the long-term. This growth is even flowing over into their advertising sector and has continued to help search advertising to grow. However, this does not mean that there are no other ventures being developed. In fact, there has been heavy investing in technology and AI in support of their automotive lineup of self-driving cars known as Waymo and Deepmind.
When it comes to telecommunication stock like AT&T, beginners will love that it provides great yields. As a good beginner investment, you will also like that it provides stability in its earnings. Sure, it may not be the hottest stock on the market, but it does offer returns that will not change much. So this may be a stock worth investing in.
If you are planning to invest for dividends, then this stock is a good choice for buying for yield. At the moment, the yield for the dividends is over 6.5% and that is great when the average interest is usually lower.
In recent years, the stock of Microsoft has proven to be a great beginner’s stock to invest in. Plus, being grouped together as a FAANG Stock along with other tech companies has allowed Microsoft to grow and expand in the cloud, which has allowed them to remain competitive.
With their growth in the cloud, their Microsoft 365 and Teams cloud platform will be able to provide even more growth well into the future. Of course, the stock price can seem a bit much, but when you think about it, it’s worth it for the beginner.
With a 26 forward P/E, that is a lot higher than other tech companies and it may be cause for alarm. However, this is ok because a 10% increase in earnings is expected during the upcoming fiscal year.
Proctor & Gamble
It would seem like tech companies would be the way to go as a beginner investor. But the thing to keep in mind is that other companies in other industries, such as Proctor & Gamble, also need to catch your eye because of their ability to develop and grow.
As the creator of many consumer products and household brands that are used daily, the company stock is considered to be defensive and allows for consistency and stability in their stock regardless of how the market is affected.
This also means each share could remain strong as compared to shares offered by other companies.
With good yield and security, it is a good idea to invest in Proctor & Gamble as new investors will love the lasting results.
Considering Visa as a beginner’s stock choice will give a good mix of old and new when it comes to the process of payments is concerned. This can be seen as a new model that continues to be used as we see with PayPal.
Whatever you do, though, do not think that Visa won’t be able to stay competitive just because of some changes in technology. In fact, with Visa obtaining “Plaid,” Visa has now become even more grounded within the technology realm.
As you look for great stocks to invest in, make sure to keep Visa on your mind as being one of the top choices for beginners.
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