Investing in the stock market at first can be a little intimidating. You might not know what stocks to pick. In that case, one of the best things to do is to start out simple by buying individual blue chip stocks. These stocks are growth companies with a long track record that pay dividends. You can start buying one or a few shares at a time and then buying more as you build your diversified portfolio.
As you learn to build your investment portfolio and buy and hold, you can start buying other stocks later on. But right now, let’s look at what a basket of stocks might look like for a newbie investor in 2017. Let’s start that basket of stocks with not only a high investment choice but a company that has recently done very well. Excellent quarterly earnings just met McDonald’s recent record high share price, and that makes this a great first dividend power stock to add to your portfolio. Look at the chart and yield for that stock.
Now that you have your first investment under your belt, it is time to move on to the second choice. Your second stock for your beginning portfolio is going to be another company with the same type of track record, the same record high price and also recent good earnings like VRX Options. The second building block of your portfolio is Disney. Now it’s time to move on to the third building block.
For your third stock, let’s think about the S&P 500 or anything you want may be in technology sector. One good rock solid play in the technology sector is Intel. Intel is also a good forward play when it comes to a value stock. Your 4th play, another power company, play yet, also a value stock, is General Electric, GE. Now for your 5th and final stock for your beginner portfolio. Let’s go with a Staples stock for your 5th and final play, although it’s not going to be the usual recommendation from experts, Proctor and Gamble. Let’s go with Church and Dwight Company (CHD) whose chart looks like it could mirror Proctor and Gamble in the future. Grow those companies first as a great beginner portfolio that is diversified and ready to perform.