The stock market is a risky place, even for the most seasoned investors. The volatile nature of the market means that there are always stocks that are set to rise or fall in value.
However, as an investor it’s important to balance risk with reward potential; you don’t want to put all your eggs in one basket, so to speak. The best stocks for your portfolio may not be the obvious choices.
The most successful investors aren’t afraid to take risks but they also look at insider trading and other factors before investing their money. Whether you’re a new investor or an old hand, there are specific stocks that can help you save for a secure future while also giving you some return on your investment (ROI). Here are 5 stocks that will help ensure your future security
1. Microsoft
When it comes to technology stocks, few are more recognizable than Microsoft. The company has been a pioneer and leader in software, operating systems, and other computer-related products since the company’s foundation in the early 1980s.
Microsoft shares have consistently risen over the past few years, and the company’s most recent earnings report suggests that this trend is set to continue.
Microsoft has leveraged its brand name to expand into a number of new sectors, including artificial intelligence, augmented reality, and voice-activated assistants. This wide breadth of product lines, along with the company’s tendency to make forward-looking investments, suggests that Microsoft shares are likely to rise in the coming years.
Microsoft’s stock price has risen steadily over the past five years, and the company’s earnings report for the most recent fiscal quarter showed that this trend is likely to continue.
Microsoft’s earnings per share, or EPS, increased by 23.8% over the previous year’s quarter, and total revenue rose by 19.9%. Microsoft’s future prospects are also promising, with the company’s EPS predicted to increase by 5.1% in the coming year. These trends suggest that Microsoft shares are likely to continue rising in the near future.
2. Google
Google, the world’s largest Internet search engine, has been a leader in a wide variety of online services since its founding in 1998. Google’s core business is advertising sales, and the company’s products and services also include cloud computing, digital assistants, software, and hardware.
Google’s wide variety of products and services, along with the company’s significant investments in research and development, suggest that Google’s financial performance is likely to rise in the coming years.
Google’s stock price has risen by approximately 30% over the past year, and the company’s most recent earnings report suggests that this trend is likely to continue. Google’s EPS increased by 33.4% over the previous year’s quarter, and the company’s total revenue rose by 19.1%.
Google’s future prospects are also promising, with the company’s EPS predicted to increase by 15.5% in the coming year. These trends suggest that Google shares are likely to rise further in the near future.
3. Amazon
One of the most recognizable online retailers in the world, Amazon has been growing its product offerings and services since its foundation in the early 1990s. Amazon’s core business is e-commerce sales, but the company also offers a wide variety of other services, including cloud computing, artificial intelligence, and voice-activated assistants.
Amazon’s varied product offerings, along with the company’s significant investments in research and development, suggest that Amazon’s financial performance is likely to rise in the coming years. Amazon’s stock price has risen by approximately 30% over the past year, and the company’s most recent earnings report suggests that this trend is likely to continue.
Amazon’s EPS increased by 48.1% over the previous year’s quarter, and the company’s total revenue rose by 41.9%. Amazon’s future prospects are also promising, with the company’s EPS predicted to increase by 34.5% in the coming year. These trends suggest that Amazon shares are likely to rise further in the near future.
4. Facebook
One of the world’s largest social media companies, Facebook has been growing its user base and services since the company’s founding in 2004. Facebook’s core business is online social networking, but the company also offers a variety of other services, including cloud computing, artificial intelligence, and voice-activated assistants.
Facebook’s varied product offerings, along with the company’s significant investments in research and development, suggest that Facebook’s financial performance is likely to rise in the coming years.
Facebook’s stock price has risen by approximately 30% over the past year, and the company’s most recent earnings report suggests that this trend is likely to continue. Facebook’s EPS increased by 34.4% over the previous year’s quarter, and the company’s total revenue rose by 32.3%.
Facebook’s future prospects are also promising, with the company’s EPS predicted to increase by 25.5% in the coming year. These trends suggest that Facebook shares are likely to rise further in the near future.
5. Intel Corp.
One of the world’s leading semiconductor manufacturers, Intel has been producing microchips since the company’s establishment in the mid-1950s. Intel’s core business is microchip production, though the company also offers a variety of other products and services, including software, Internet of Things technology, and artificial intelligence.
Intel’s varied product offerings, along with the company’s significant investments in research and development, suggest that Intel’s financial performance is likely to rise in the coming years.
Intel’s stock price has risen by approximately 30% over the past year, and the company’s most recent earnings report suggests that this trend is likely to continue. Intel’s EPS increased by 41.6% over the previous year’s quarter, and the company’s total revenue rose by 27.3%.
Intel’s future prospects are also promising, with the company’s EPS predicted to increase by 26.2% in the coming year. These trends suggest that Intel shares are likely to rise further in the near future.
6. Verizon Communications Inc.
One of the world’s leading telecommunications companies, Verizon has been providing communications services since the company’s founding in the early 1980s. Verizon’s core business is wired and wireless telecommunications services, but the company also offers a variety of other products and services, including Internet of Things technology and artificial intelligence.
Verizon’s varied product offerings, along with the company’s significant investments in research and development, suggest that Verizon’s financial performance is likely to rise in the coming years. Verizon’s stock price has risen by approximately 30% over the past year, and the company’s most recent earnings report suggests that this trend is likely to continue.
Verizon’s EPS increased by 55.2% over the previous year’s quarter, and the company’s total revenue rose by 53.7%. Verizon’s future prospects are also promising, with the company’s EPS predicted to increase by 20.5% in the coming year. These trends suggest that Verizon shares are likely to rise further in the near future.
7. Visa
One of the world’s leading credit card issuers, Visa has been growing its business since the company’s founding in the early 1950s. Visa’s core business is credit card services, though the company also offers a variety of other products and services, including Internet of Things technology and artificial intelligence.
Visa’s varied product offerings, along with the company’s significant investments in research and development, suggest that Visa’s financial performance is likely to rise in the coming years.
Visa’s stock price has risen by approximately 30% over the past year, and the company’s most recent earnings report suggests that this trend is likely to continue. Visa’s EPS increased by 45.7% over the previous year’s quarter, and the company’s total revenue rose by 43.8.
8. Master Limited Partnerships
Right off the bat, MLPs are a great way to diversify your portfolio. Both large and small companies offer MLPs, so there’s a good chance you’ll find one in your industry of choice.
Unlike many stocks, these aren’t traded on the stock market, so they’re not impacted by general market conditions. And while they’re not risk-free, they’re relatively safe because the government regulates them – which means they’re less likely to be affected by changes in administration.
A portion of the revenue generated by the MLP goes to its general partners (who include you, the investor). This compensates you for your risk as a shareholder. Like all investments, MLPs aren’t guaranteed to grow in value, but they do have a relatively low risk.
9. Real Estate Investment Trusts (REITs)
The majority of these are real estate stocks that trade like common stock, so they’re liquid and can be bought and sold easily. As an investment, REITs are a good way to diversify your portfolio because there are some that specialize in various types of real estate. For example, you could invest in an industrial REIT to gain exposure to the commercial real estate sector.
REITs also offer a decent return – especially if you focus on quality, blue-chip stocks. Just keep in mind that REITs are riskier than other investments, so they may not be suitable for all portfolios. REITs also trade on the stock exchange, so they’re susceptible to changes in the market.
10. Exchange Traded Funds (ETFs)
ETFs are mutual funds that are listed on a stock exchange. They provide diversification by investing in various sectors and industries, which minimizes risk. They’re also low cost, so you get more for your money.
If you’re looking for a broad-based ETF that covers a wide range of industries, there’s the Vanguard Total Stock Market ETF (VTI). It’s a great choice for long-term investors who can ride out the ups and downs of the market – since it’s down 5% from its peak.
If you’re looking for something that’s a little more defensive, there’s the iShares Core S&P 500 ETF (IVV). It’s down just 2% from its peak.
11. Diversified Stocks
When you invest in a diversified stock, you’re investing in a company whose products or services are varied. Typically, such companies have a wide customer base, which makes them less susceptible to changes in the economy.
For example, Coca-Cola is an iconic brand and is sold in more than 200 countries worldwide, which makes it a good investment for your portfolio. Other diversified stocks include Colgate-Palmolive, Procter & Gamble, and Johnson & Johnson.
12. Mutual Funds
Mutual funds are a great way to diversify your portfolio because they invest in a wide range of stocks, bonds, and other assets. They’re managed by a professional fund manager who can help you get a good return on your investment while minimizing risk.
There are several types of mutual funds, each with its own advantages and disadvantages. If you’re looking for a short-term investment, you can consider a money market fund. Be aware, though, that there are no guarantees that your money will be safe in the short-term.
If you’re looking for a longer-term investment, you can consider a bond fund. With these, you’re lending money to companies through their bond issues.
13. Walt Disney
Disney is a well-rounded company that owns everything from theme parks to movie studios. When you invest in Disney, you own a piece of a diversified company that makes money from a wide variety of sectors.
This means it’s less susceptible to changes in the economy. Disney has a long track record of improving shareholder value, so you know you’re investing in a company that will stand the test of time. The only thing to keep in mind is that Disney is a cyclical company, so it tends to swing up and down with the economy.
14. Johnson & Johnson
Johnson & Johnson is a diversified company that makes everything from baby products to pharmaceuticals. The company is a long-standing industry leader and has a reputation for making quality products.
This means you can be confident investing in J&J and knowing that your money is in a safe, reliable company. The only thing to keep in mind is that it’s a cyclical company, making it susceptible to changes in the economy.
Conclusion
Investing in stocks can be a great way to earn extra income and secure your financial future. However, investing in individual stocks is risky, as any one company can go out of business and leave its stockholders with worthless shares.
By diversifying your investments between different sectors and industries, you can lower your risk while increasing the chance that one of your stocks will make a large gain. When choosing your stocks, look for companies with a strong track record of increasing dividends, strong management, and a good balance between risk and reward.
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