The exciting world of stock market investing shouldn’t be limited to seasoned participants. Newcomers also deserve a shot at profiting in the markets. And thankfully, there are certain stocks that are ideal for beginners to buy.
It’s advisable for less experienced traders to focus on companies that are large, have been around for while and are profitable. Moreover, beginners should stick to stocks that aren’t too expensive. As an added bonus, it’s nice if the stocks offer a dividend for extra steady income.
These stocks for beginners meet most or all of the aforementioned criteria:
- Walmart (NYSE:WMT)
- Coca-Cola (NYSE:KO)
- Bank of America (NYSE:BAC)
- Alcoa (NYSE:AA)
- Intel (NASDAQ:INTC)
We’ll take this one step at a time and explore each of these carefully chosen stocks for beginners to buy.
Stock for Beginners to Buy: Walmart (WMT)
What better place to begin than the big-box retail standby Walmart? Even as the novel coronavirus was spreading, WMT stock remained fairly stable compared to many other stocks on the market.
Walmart shares are moderately priced as they tend to trade above $100 but below $140. Plus, WMT stock offers an annual forward dividend yield (the expected amount per stock share that you could get paid after holding onto the shares for a year) of 1.8%.
The dividend payments will be a nice extra bonus while you wait for WMT stock to (hopefully) go up over time. And you’ll essentially own a little piece of a very well-established business as people aren’t likely to stop shopping at Walmart anytime soon.
Most people have at least tried Coca-Cola’s products once. Remember, this company doesn’t just produce those famous sugary Coca-Cola brand caffeinated sodas. Along with that, the company also produces Sprite, Minute Maid, Dasani, Powerade, Schweppes, Fresca, Barq’s and more.
Also, bear in mind that these products are sold not only in grocery stores and convenience stores, but also at restaurants and other dining establishments. No wonder famous billionaire and legendary investor Warren Buffett loves KO stock so much!
The 3.6% forward annual dividend yield is also a nice touch. And the price tag of KO stock, which is typically between $50 and $60, should be palatable for many new investors.
Bank of America (BAC)
There are plenty of banking companies to choose from, but Bank of America is among the biggest — and it has branches across the nation. The company was founded back in 1784, if you can believe it, and currently has around 16,900 ATMs.
A forward annual dividend yield of 2.9% means that you can buy and hold BAC stock and let those periodic payments post to your account. And at a typical range of $20 to $35, you probably won’t have to break the bank to invest in Bank of America.
If you’re concerned about banks having problems during the coronavirus pandemic, that’s understandable. But as the economy improves over time, shares of BAC stock will rise. That’s simply money in the bank.
Admittedly, not everyone has heard of the company Alcoa. But this company is a giant producer of aluminum. And aluminum is found in a wide variety of products, including foil, soda cans, cosmetics, dyes, cookware and even deodorants.
Alcoa has been in existence since 1888 and has weathered numerous financial storms, including the financial crisis of 2008 and 2009. In addition, Alcoa is a truly international company as it has a market presence in the United States, Canada, Spain, Australia and elsewhere.
Unfortunately, the company doesn’t currently offer an annual dividend. But remember, dividends are only an added bonus and you can still profit if the AA stock price goes up. And since it’s typically between $10 and $20 per share, you can take a stake in Alcoa at a very reasonable price.
Technology stocks can be exciting investments for beginners to make. The problem is that some tech stocks are super expensive. Therefore, we’ll focus on highly affordable INTC stock, which tends to trade between $45 and $70 per share.
Not every technology stock pays a dividend, but INTC stock currently offers a forward annual dividend yield of 2.1%. So, you can collect the quarterly payments while you’re invested in the shares of this well-regarded microchip manufacturer.
Shares of Intel rebounded strongly after investors’ fears surrounding the coronavirus crisis reached their peak. Technology has proven to be a resilient sector of the economy, and you can take a position in the future of tech today by gradually accumulating shares of INTC stock.
David Moadel has provided compelling content — and crossed the occasional line — on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. As of this writing, David Moadel did not hold a position in any of the aforementioned securities.