What are the best stocks to invest in for beginners?

The best stocks for beginners are well-established, household names with consistent earnings and strong market positions. Companies like Amazon, Coca-Cola, Microsoft and Apple are great examples because they offer stability and growth potential. These stocks are less volatile, which can help new investors stay committed during market fluctuations.

Which type of stock trading is best for beginners?

For beginners, long-term investing in well-known, stable companies is often the best approach. Rather than engaging in day trading or trying to time the market, focus on building a diversified portfolio of strong companies with predictable earnings.

Is $1,000 enough to start investing in stocks?

Yes, $1,000 is enough to start investing in stocks. With many brokers now offering zero-commission trading and fractional shares, you can build a diversified portfolio even with a smaller investment. For example, you could allocate $100 to each of 10 different companies, allowing you to spread your risk across multiple investments.

Advertiser Disclosure

8 Best Stocks for Beginners for September 2024

September 16, 2024

8 min Read

Written by John Csiszar

Edited by Elizabeth Constantineau

Business woman working with modern laptop computer and smart phone with financial business strateg stock photo

Maxxa_Satori / iStock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

If you’re just starting out in the stock market, owning well-known, household names with consistent earnings can be a great strategy. Familiar companies can help keep you invested, which is key to long-term success. Large businesses with predictable earnings also tend to be less volatile, easing concerns for investors during market fluctuations. The good news is that it’s never been easier for new investors or those with smaller investment balances to get involved in the market.

8 Best Stocks for Beginners

Many traditional brokers now offer zero-commission trading, no account minimums and fractional shares as well. This means that even with $1,000, you could build a diversified portfolio, perhaps owning $100 of 10 separate companies.

While you should always consult with a financial advisor before investing in stocks, especially if you are a beginner, here are eight of the best stocks for beginners. Each has an established reputation, consistent earnings and exciting products that you may use in your everyday life.

Amazon (AMZN)

Stock price as of Sept. 13, 2024: $186.49
Market Cap: $1.93 trillion
Dividend Yield: N/A

It’s almost hard to believe that Amazon used to be a simple online seller of books. As the No. 1 online retailer in the world, Amazon will sell almost anything to almost anyone. That gives it a dominant market position that has consistently proven hard for competitors to dismantle, making it a good option for beginning investors — most of whom have likely bought something from Amazon or at least know what it is.

Looking to the future, however, things could get even more exciting. Amazon is investing heavily in artificial intelligence, which has been a huge buzzword in 2024. Its Amazon Web Services platform is on the cutting edge of that technology and should help the company continue to grow.

Coca-Cola (KO)

Stock price as of Sept. 13, 2024: $71.41
Market Cap: $310.86 billion
Dividend Yield: 2.72%

Coca-Cola is one of the most well-known brands in the entire world, and although it has a fierce competitor in Pepsi, it has a dominant market position that no other rival seems likely to touch. Although the company is mature and slow-growing, its cash flow is impressive, allowing it to pay a generous 2.72% dividend at current levels. It has also raised that dividend for 60 consecutive years, an admirable record that shows the company’s resilience.

While Coke no longer grows in leaps and bounds, its net profit margins are excellent, at nearly 23% of sales. This helps make the stock a good long-term option for beginners. Analysts have a consensus “buy” rating on the company.

Microsoft (MSFT)

Stock price as of Sept. 13, 2024: $432.11
Market Cap: $3.21 trillion
Dividend Yield: 0.70%

Microsoft is still firmly entrenched in the world of desktop operating systems, owning a commanding and unassailable market share approaching 70%. But investors are excited about the more modern direction the company is taking.

For example, the company is a big investor in OpenAI, the creator of ChatGPT, and its Azure cloud services business is nipping the heels of Amazon Web Services in terms of market share. In addition to being at the cutting edge of new technology, Microsoft also owns popular businesses like Skype and LinkedIn.

Apple (AAPL)

Stock price as of Sept. 13, 2024: $215.21
Market Cap: $3.27 trillion
Dividend Yield: 0.45%

When billionaire Warren Buffett, the so-called “Oracle of Omaha,” says that Apple is “probably the best business I know in the world,” that alone makes the company worth owning. The world’s most popular consumer products company, Apple is also currently the largest company in the entire S&P 500 index, in terms of market capitalization.

These and other factors make the company a very defensive market leader, making it a good option for beginning investors to consider. Add to this the fact that the stock has been a consistent, long-term winner — and one that analysts love — and Apple checks all the boxes for being a good investment.

Berkshire Hathaway Class B Shares (BRK-B)

Stock price as of Sept. 13, 2024: $447.61
Market Cap: $970.43 billion
Dividend Yield: N/A

Speaking of Warren Buffett, Berkshire Hathaway, the company of which Buffett is CEO, is another good option for beginning investors. After all, if you’re just starting out in the stock market, you could do a lot worse than relying on the investment arm of the “Oracle of Omaha” himself to do your stock picking for you.

Berkshire owns a relatively concentrated portfolio of investments, including other picks on this list like Apple and Coca-Cola. But it’s the insight of Buffett and his investment team that makes Berkshire Hathaway a long-term winner.

In addition to the hand-picked stock portfolio — and the immense cash hoard of over $276 billion the company holds — when you invest in Berkshire, you also get the right to attend the annual shareholders meeting in Omaha, which is a huge social, media and business spectacle.

Johnson & Johnson (JNJ)

Stock price as of Sept. 13, 2024: $165.52
Market Cap: $400.61 billion
Dividend Yield: 3.00%

Healthcare is a good industry for beginning investors, as consumers will always need it. And if you’re going to invest in that sector, you might as well start with one of the biggest companies in the industry, the $400.61 billion behemoth Johnson & Johnson.

The company has more than 275 subsidiaries and operates in more than 60 countries, providing medical devices, pharmaceuticals and some of the most popular consumer brands in the world, from Band-Aid and Tylenol to Aveeno.

JPMorgan Chase (JPM)

Stock price as of Sept. 13, 2024: $204.32
Market Cap: $587.65 billion
Dividend Yield: 2.25%

JPMorgan Chase is a global, diversified financial services firm. In addition to basic banking services like checking and savings, the company provides global investment and investment banking services. American consumers might be more familiar with the company’s diversified credit card offerings, often linked with travel-related services.

While banking can be cyclical in nature, JPMorgan Chase has few rivals in the world, making it a consistent earner and market leader. It has easily outperformed the return of the S&P 500 in 2024 and over the prior one-, three- and five-year periods.

All of these factors make JPMorgan Chase a solid blue chip stock with an excellent long-term financial position, a good choice for beginning investors. Analysts have a consensus “buy” rating on the company.

Walmart (WMT)

Stock price as of Sept. 13, 2024: $80.60
Market Cap: $647.7 billion
Dividend Yield: 1.03%

Amazon may be the top dog in the online world, but Walmart is by far the biggest retailer in the world. Selling a wide variety of products for often unbeatable prices makes Walmart a consistent winner, but it’s also expanding its online presence to compete better with companies like Amazon.

In fact, in its most recent quarter, Walmart reported that it grew its global online sales by 21% year over year. Overall, Walmart appears to be firing on all cylinders. It has outperformed the S&P 500 over the YTD, one-year, three-year and five-year periods by a large margin, and its dominant position in its industry has it well-positioned for future long-term gains. Beginning investors could do a lot worse than starting with this retail giant, which also pays a 1.03% dividend.

Final Take

Investing in the stock market can be daunting for beginners, but starting with well-established companies like those on this list can provide a solid foundation. These best stocks for beginners offer a mix of stability, growth potential and in some cases, consistent dividends, making them ideal choices for those new to investing. By focusing on familiar companies with strong market positions, you can build a portfolio that supports long-term financial success.

FAQ

Here are the answers to some of the most frequently asked questions about investing for beginners.

What are the best stocks to invest in for beginners?
- The best stocks for beginners are well-established, household names with consistent earnings and strong market positions. Companies like Amazon, Coca-Cola, Microsoft and Apple are great examples because they offer stability and growth potential. These stocks are less volatile, which can help new investors stay committed during market fluctuations.
Which type of stock trading is best for beginners?
- For beginners, long-term investing in well-known, stable companies is often the best approach. Rather than engaging in day trading or trying to time the market, focus on building a diversified portfolio of strong companies with predictable earnings.
Is $1,000 enough to start investing in stocks?
- Yes, $1,000 is enough to start investing in stocks. With many brokers now offering zero-commission trading and fractional shares, you can build a diversified portfolio even with a smaller investment. For example, you could allocate $100 to each of 10 different companies, allowing you to spread your risk across multiple investments.

Data is accurate as of Sept. 16, 2024, and is subject to change.

Daria Uhlig contributed to the reporting for this article.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.