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Our Top 3 Stock Picks for Beginners in 2023

What a difference a few years can make! During the pandemic, several million newbie investors entered the markets and changed the course of history. However, a small group of investors are turning to beginner stock picking in 2023. Many people are still afraid to enter this market because they know it is risky.

However, if you are a newbie investor and missed the hurrah days of 2020 and 2021, don’t worry. You can still see if you have the investment bug by pouring capital into stock picks for beginners as we head into 2023.

It is not an investment category per se. Instead, stock picks for beginners are companies that offer stability and consistency if you want to start your investing journey in 2023. Yes, they won’t offer the explosive growth of most index investing. high octane. But you can rest easy knowing that the fundamentals behind your action are strong.

The following three stocks are companies that offer great stability if you are an investor looking for growth and stable investments.

COST Costco $483.02
HD Home deposit $320.48
KO Coca Cola $63.14

Costco Wholesale Corp. (COST)

Source: ilzesgimene / Shutterstock.com

Costco (NASDAQ:COST) is a discount wholesaler that offers its customers a wide range of products at lower prices than other retailers. The company has been in business since 1976 and has become one of the largest retail chains in the world.

Even as other businesses buckle under the pressure of the recession, Costco continues to do well. The company took a big step forward with its third quarter results and is likely to remain a major player in the market. Inflation continues to be challenging, but COST should do well on the back of continued expansion and strong results.

However, the mixed results for the first quarter of 2023 have darkened the mood recently, but there are also reasons for celebration. Membership fee income is the bulk of its income, and it is expected to grow, which will make investors very happy.

Finally, investors have an incentive to buy Costco for the regular dividend it pays to its investors. Although not very high, there are times when Costco has rewarded its investors with special dividends. The last time this happened was in 2020. This will keep investors coming back again and again.

Home Depot

Home Depot (HD) sign on blue sky background

Source: Rob Wilson / Shutterstock.com

Home deposit (NYSE:HD) is the world’s largest and rapidly growing home improvement retailer. The company’s stock price has soared over the past five years as investors have been rewarded for their patience with a steady stream of strong earnings.

The Home Depot may be your best bet if you’re looking for a long-term supply chain leader. It has a proven track record of meeting customer demand in a decelerating growth environment. Its third quarter results highlight this fact.

In the last quarter, sales increased by 5.6%, while comparable sales increased by 4.3%. This led to an increase in earnings per share from $3.92 to $4.24. You might say, well, those numbers aren’t that impressive.

Recently, Home Depot saw its stock distribution increase by 15.2% to $1.90 per share, giving it a yield of 2.37%. For 13 straight years, the home improvement retailer has increased its dividend payout, a very healthy record considering the number of issues that plagued the stock market during those times.

Coca-Cola (KO)

bottles and cans of coca-cola.  coke is a top notch stock

Source: Fotazdymak / Shutterstock.com

Invest in Coca Cola (NYSE:KO) is often a good choice for beginners, as it has been one of the most trusted stocks since its IPO in 1919.

Even in times of market volatility, Coca-Cola has maintained its value and delivered strong returns. Additionally, Coca-Cola maintains a strong commitment to innovation and sustainability, which could further propel its value in 2023.

Those looking for an easy IPO should consider Coca-Cola a great first buy – combining conventional wisdom with long-term potential, it’s hard to beat.

Although commodity prices are difficult to predict, Coca-Cola succeeded with revenue growth of 16% in the third quarter. Unit volume also increased by 4%. This is a positive sign for the company given the price increases. Consumers are willing to pay more for their favorite products, showing their brand loyalty.

At the same time, Coke has done a lot for price-conscious consumers in recent years. One-size-fits-all cans and smaller bottles have helped keep Coca-Cola prices low in developing markets by using returnable bottles, which can then be reused or repurposed. This reduces the cost of materials and reduces the environmental impact of their operations.

In light of the company’s recent efforts and its diverse business model, it’s no surprise that Coca-Cola is a dividend king. It increased its dividend distributions for sixty years. Few companies shine as bright as Coca-Cola among newbie stock picks in 2023.

At the date of publication, Faizan Farooque did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and many other financial sites. Faizan has several years of experience in stock market analysis and was a former data reporter at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions about their portfolio.


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
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