When you are a beginner, investing in stocks can seem overwhelming. The number of securities available to investors is in the thousands, and no strategy or approach is guaranteed to be successful. In contrast, if you stay away from the daily chaos of the stock market on a daily basis, it is possible that you will miss out on long-term growth opportunities.
Investing in stocks can be scary, and you should proceed with caution, although avoiding them altogether might significantly reduce your savings potential. The good news is that there are so many options out there, so you can choose from a few strategies that are more secure than others.
There is always a risk associated with investing, so there is no assurance that the stocks will perform well in the future. Yet, all of them possess characteristics that qualify them to be considered the best stocks for new investors. In each case, the company pays a regular dividend to its shareholders, has a market capitalization of at least $10 billion, belongs to a "defensive" sector, and has made significant profits off the assets it owns.
The Apple Company is one of the world's biggest consumer product companies, ranging from iMac computers to iPhones to Apple Watches. Having a loyal fan base and continuously innovating earned Apple its position as the world's largest company by market capitalization.
A favorite investment of Berkshire Hathaway CEO Warren Buffett, Coca-Cola is one of the most enduring consumer staples that has done well through economic downturns as well.
Costco is one of the best-known retailers in the world, renowned for its low prices and its “treasure hunt” shopping experience. Consumers pay the cost of membership just to shop there; the renewal rate in the United States and Canada reached an amazing 91% in the fiscal year 2021.
Home Depot has been doing well since the start of the pandemic, with homeowners spending money on improving their homes. Truth be told, Home Depot has always been a successful retailer due to the fact that there has always been — and probably always will be — a demand for home improvement products.
In the world of stocks, McDonald's is one of a few stocks that are called “dividend aristocrats,” along with a few others. In order to qualify as a dividend aristocrat, a company must have raised its dividend continuously for over 20 consecutive years. As a matter of fact, McDonald's has raised its dividend for 45 years in a row, every single year since it went public.
The Microsoft Corporation is one of the world's largest companies, whose popular Windows software runs on millions of personal computers all over the world. As a result, the company has stepped up its game recently; however, as a result of booming cloud services revenue as well as partnerships with manufacturers of autonomous vehicles.
One of Coca-Cola's main competitors, PepsiCo, is another staple of the consumer market that pays a high dividend while maintaining good financial health.
The Houston-based Sysco produces and sells food-related products for the food service industry.
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