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The Best Stocks for Beginners



Every year, we make New Year’s Resolutions. With a fresh 365 days in front of us, we feel empowered to try and tackle some of the challenges that eluded us this year. Of course, plenty of us who swear we’ll learn a new language or drop 10 pounds suddenly find that we just can’t find the time by mid-January and ditch those French books and fad diets for TV and snacks.

Financial resolutions should be given more weight, however. Sure, getting in shape or finally being able to watch French films without subtitles are admirable goals, but having more money can make both of those goals, and any other you may pursue, a lot easier. Learning to invest smartly and sustainably can help you improve your long-term financial fortunes, making it a New Year’s Resolution worth keeping.

With 2019 in the home stretch and 2020 closer than you think, here’s a quick look at some of the best stocks for beginners.

What to Look For

The best stocks for beginners tend to be low risk. If you are just starting out, you don’t want to bet the farm on big options, especially if you aren’t entirely sure about all the terminology yet. Investing is a game with a high learning curve, and while that shouldn’t stop you from wanting to learn, it should dissuade you from thinking a few big bets at the beginning can make you a fortune. Instead, you want to focus on making smart, low-risk, long-term investments. Good beginner options are also far more affordable than higher-risk high-end ones. When you’re just starting out, you want options that can produce consistent modest returns to help you build up funds while you learn the industry. There are many Stock Apps to help you make the best decision once you find what works for you.

What to Avoid

Some basic things to avoid in beginner choices include:

  • Volatile firms which cannot promise to be a stable investment
  • Boom or bust options
  • Options that go bust easily in bad markets (that is, luxury consumer goods)
  • Short interest options

Examples to Research

Some of the best beginner stocks for the final quarter of 2019 and the beginning of 2020 include:

  • Amgen (AMGN): A California-based biopharmaceutical company which specializes in developing different therapeutic treatments for diseases. It boasted solid revenue, income, and yield.
  • Coca-Cola (KO): One of the best pieces of advice for beginning traders is to find established low-risk firms that offer their opportunities at comparatively-affordable rates. While big-name firms like Coca-Cola won’t be nearly as inexpensive as small market stocks, if you are going to start with a big-name option, one with a huge market share and Warren Buffet’s personal blessing is a good place to start.
  • Eli Lilly & Co. (LLY): Another pharmaceutical developer based in Indianapolis with modest gains and a solid yield.
  • Sysco Corp. (SSY): A Houston-based firm that manufactures and sells food-related products for the food service industry, this is a good niche market option.
  • Zoetis Inc. (ZTS): A New York-based pharmaceutical company specializing in vaccines.

As the three pharmaceutical firms on this list demonstrate, there is strong interest in the health and pharmaceutical industry of late, especially due to our continued national focus on health care. As such, some of the best stocks for beginners and experienced traders alike are in this industry.