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Choosing the right stocks for your portfolio and achieving your investment goals are the first steps toward building wealth. It has become possible to achieve your retirement goals and generate wealth with stock market investment. Wall Street has generated solid returns for investors in the past, and considering the low interest rates offered by traditional investment products, it is a good idea to invest in the stock market.
However, there are hundreds of stocks to pick from, which can be stressful if you are just beginning. You need to decide on the top stocks to add to your portfolio, and the market uncertainty does not make it easier. It helps to stick to top NYSE or NASDAQ stocks that will provide the best and most consistent returns. (Or follow Warren Buffett’s lead.) If you are a beginner looking to build a solid portfolio, here are the best stocks beginner investors can buy.
Jump To
Overview of the best stocks for beginners
Company | Best For |
Amazon | Ideal stock for the decade |
Alphabet | Long-term buy and hold |
Apple Inc. | Largest company in the world |
Walt Disney | Massive revenue growth potential |
Mastercard | Ideal mid-cap stock |
Meta Platforms | Retirement stock |
Microsoft Corporation | For conservative investors |
Netflix | Industry leader |
Nike | Capital appreciation |
Johnson & Johnson | Top dividend stock |
Nvidia | Best artificial intelligence stock |
Best stocks for beginners
Amazon (AMZN)
Amazon is one of the top-performing stocks of all time, with a revenue growth of 13%. The stock has been constantly moving upwards since the start of 2024. The company is well-positioned in the industry and is in the growth stage. Amazon has different ways to take over the market and win. It is growing tremendously through online sales, subscriptions, and web hosting.
Its two biggest revenue generators—Amazon Web Services (AWS) and the advertising segment—are thriving. They hold a large market share and have reported impressive revenue growth. The company has become a household name and has made same-day delivery possible. If you think that the stock price is very high, you may want to consider fractional shares. The stock has generated 100% returns in the past five years, and its growth is not stopping.
Alphabet (GOOGL)
The parent company of the search engine Google, Alphabet, has a strong presence worldwide. It oversees all the products and services related to Google Maps, Google Ads, YouTube, Chrome, Android, and Google Cloud. It has different revenue streams and is consistently growing. Alphabet has a revenue growth rate of 15%.
The company reported $67.6 billion in revenue at the end of the first quarter of 2024. It is one of the most profitable companies globally, and investing in the stock is low-risk. Its products and services are a part of every smartphone or computer device in the world, and this will not change for a while. It also declared the first-ever dividend this year.
Google Cloud is also gaining massive popularity, which is only the beginning of Cloud. The widespread adoption will drive revenue and growth numbers. Alphabet stock is the one to buy and hold for the long term.
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Apple (AAPL)
Apple has made history with a 3 trillion market cap. It is the world’s second-largest company and a top tech stock that rewards investors. It is making substantial revenue numbers and has consistently grown over the years. Apple has reported revenue growth of 2%, and the stock price does not do justice to the company's potential. It also has a solid cash flow that is used to reward the investors. Apple stock is a solid buy-and-hold for new investors.
The company has a range of products and services that generate strong revenue. It is known for iPhone, Mac, iPad, Apple Watch, and iCloud. It invests in AI and has partnered with OpenAI to integrate AI into its products. Apple has seen a rise in the number of users paying for its services, increasing revenue. It saw an all-time high in services revenue in the recent quarter at $23.12 billion. If you are interested in picking hot tech stocks, Apple is the one! With the company entering new markets and introducing new products, there is much to gain in the long term.
Walt Disney (DIS)
All of us are aware of the Walt Disney Company and its impact on our lives. The company has a solid revenue stream, and its holdings go far beyond ESPN and the Magic Kingdom. It is known for National Geographic, Marvel, Fox and has a range of vacation-oriented services spread across the world. All of us still want to visit the theme parks or watch a Disney-backed show, and this will never grow old.
The company has a broad reach and the potential to engage with consumers worldwide. Walt Disney Company caters to people of all ages, making the stock a hot pick. Despite the pandemic and the forced shutdowns, the company managed to rake in strong revenue numbers with the Disney+ streaming services. It brought millions of subscribers while successfully making and sharing new content.
Mastercard (MA)
Credit cards are an essential part of our lives, and we may start using bitcoins for daily transactions, but it could take a long time. Mastercard has established a payment system that allows easy settlement of more than 5,000 transactions in a second. It has established itself as a strong player in the industry and is ahead of its competitors in digital payments. The company has a revenue growth of 11% and a massive chance to grow. With the resumption of spending verticals like travel and shopping, credit cards will grow, generating revenue for the company. It is a dividend stock with a yield of 0.58%.
Meta Platforms Inc. (FB)
Popularly known as Facebook, Meta Platforms is a great investment. Mark Zuckerberg founded the social media giant, and the stock is trading at much higher than the value it debuted in the stock market at its IPO in 2012. It is currently trading at $509, and the company's revenue increased 27% in the recent quarter. Besides Facebook, it also owns WhatsApp and Instagram, which generate consistent revenue for the company. All the products together serve more than 3.24 billion daily active users.
Most of us have at least one of the social media apps on our devices, which means Meta Platforms have a broader reach than you can imagine. With a strong history and solid revenue numbers, it is easy to imagine why many investors love Meta shares. It could soon become a social media powerhouse, generating much ad revenue. All in all, Meta Platforms has a vast audience worldwide and continues to grow. It is working on Metaverse, which could take the company to a new high and soon reach $1 trillion in market cap.
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Microsoft Corporation (MSFT)
One of the most valuable large-cap stocks globally, Microsoft Corporation, competes with Apple for the top spot. It has a revenue growth rate of 13% and a solid balance sheet. The company is strong and provides many users with worldwide cloud computing, computer, hardware, and software services. It is consistently expanding to new countries and has recently unveiled AI-powered Personal computers and laptops. It is making huge investments in Artificial Intelligence, including the investment of $10 billion in ChatGPT, which is already generating returns.
Microsoft has a solid balance sheet, and its performance shows the value of buying and holding with the top tech stocks. It is a solid stock for beginners and will generate strong returns in the long run. This stock can help make a fortune in the long term.
Netflix (NLFX)
A leader in streaming video services, Netflix had become a huge part of our lives in the pandemic and it continues to remain the top streaming company right now. The company generated over $9 billion in revenue in the first quarter of 2024 and has already crossed 260 million subscribers worldwide.
Its revenue growth rate is 9.47%, and the company has tremendous potential to expand. It can quickly increase its market share and benefit from millions of new subscribers. The company is known for churning out unique content time and again and has won several awards. It has also entered the live entertainment space and has recently partnered with WWE.
Nike
The biggest manufacturer of sports equipment and athletic shoes worldwide, Nike exceeded $12 billion in revenue in the first quarter of 2024, and I believe it has the potential to keep expanding. The company’s market value has only increased with time, and so has its popularity.
Nike stock is a safe, blue-chip stock that has generated solid returns for investors. Nike’s global reach is expected to grow in the coming years, benefiting the shareholders. It helps to have a diversified portfolio to make the best of the market, and most stocks listed here are tech stocks. This is why adding Nike stock to your portfolio is a wise choice. It is a solid dividend stock that will help generate passive income.
Johnson & Johnson (JNJ)
One of the best healthcare stocks, Johnson & Johnson, is the one to own even in a turbulent market. The pandemic has favored many pharmaceutical companies, but JNJ stock is a hot pick for the long term. One solid reason to bet on this stock is its diversified portfolio of products and the fact that the demand will never fall.
The company has already established a solid presence in the industry and is a strong dividend payer. It includes about 250 subsidiary companies, and its products are sold in over 175 countries. The company recorded worldwide sales of $85.19 billion in 2023, which will only grow in 2024.
Nvidia (NVDA)
One of the top tech stocks to own right now is Nvidia. It is the third most valuable company in the world and is known for its artificial intelligence prowess. The company has grown tremendously over the past 12 months and has seen an unprecedented demand for AI chips. It is the top choice for organizations and governments. The Indian government has partnered with Nvidia for its graphics processing units (GPU). Nvidia has seen a revenue growth rate of 200%, and its rally is not stopping. It recently announced a 10-for-1 stock split, making it easier for investors to buy the AI giant.
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Best stocks for beginners summary
Company | Price (June 25, 2024) | Dividend Yield (as of June 25, 2024) | Revenue Growth |
Amazon | $188.04 | N/A | 12.54% |
Alphabet | $184.11 | 0.43% | 11.78% |
Apple | $210.03 | 0.48% | (0.9%) |
Walt Disney Inc. | $101.96 | 0.74% | 2.55% |
Mastercard | $454.65 | 0.58% | 12.62% |
Meta Platforms | $508.45 | 0.39% | 21.62% |
Microsoft | $449.42 | 0.67% | 13.97% |
Netflix | $671.82 | N/A | 6.67% |
Nike | $95.60 | 1.55% | 1.89% |
Johnson & Johnson | $147.87 | 3.35% | 6.46% |
Nvidia | $125.08 | 0.032% | 208.27% |
FAQs
How can I start investing in stocks?
To begin your investment journey, you need to open a brokerage account. There is a quick and straightforward process to open the account, and you will be able to make free stock
investments. Additionally, the brokerage also allows you to invest in mutual funds, ETFs, and crypto, making it easier to achieve your long-term investment goals. You can fund the account and choose the ticker for the stock you want to invest in.
What are the costs associated with stock investment?
You can open a zero commission account with a broker and invest at no cost. However, some brokerages do have a minimum deposit or minimum account requirement, and you must check this before proceeding. Additionally, the stock investment may be commission-free. Still, if you intend to invest in other assets like mutual funds or index funds, there may be a cost associated with it.
What is dividend growth investing?
Dividend growth investing is a good way to generate wealth for the long term. When you buy the best stocks that pay regular dividends, you can continue reinvesting the dividends into the market. This will ensure a consistent income stream that keeps growing in the future.
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The Bottom Line
You do not need to set aside a huge amount of money to start investing. It is possible to begin your investment journey with a small amount. Choosing the right investment makes all the difference, and you must be very careful as a new investor.
It is important to do the homework and gather information about the stocks' historical performance, dividends, and returns. Remember to compare the brokers' commissions and then make a decision. Diversifying the portfolio and ensuring you have invested in different growth stocks across various industries is crucial.
However, do not make decisions based on market volatility. What goes up will go down, and the cycle continues. Hence, make investment decisions keeping your goals and risk tolerance in mind.
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Writer
Vandita Jadeja is a financial writer and editorial assistant at Joywallet. She loves to read and write about money and brings 7 years of experience from the financial industry. She loves coffee, mountains and sunsets.
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