On average, it takes a self-made millionaire over three decades to become wealthy. Of course, none of us want to wait that long.
The stock market is an intriguing place to make money. Your gain is dependent on factors all out of your control. It’s essentially gambling on businesses.
When you’re new to investing and increasing your money for the long haul, it’s important to start with reputable companies. Keep reading for a list of safe stocks to invest in.
1. Apple (AAPL)
Since taking over as CEO in 2011, Tim Cook has more than doubled Apple’s annual revenue earnings. The technological company has remained one of the best long-term dividend stocks due to the popularity of the iPhone.
Some analysts criticize Apple for relying on smartphone sales at times, but the fact that over 100 million people in the U.S. own an iPhone suggests the demand isn’t slowing down. This doesn’t include Apple’s presence in China and Europe, either.
Current stock ratings tout it as one of the best options by market analysts within the last two years.
2. ExxonMobil (XOM)
No matter how rough the economy gets, certain products are always in demand — and gasoline is one of them.
Although experiencing a slight decline in the past few years, Exxon has committed itself to shift away from offshore drilling and focus on projects with higher returns.
The company recently sold its offshore assets for $200 million to focus on onshore resources for at least the next decade.
3. AT&T (T)
Large telecommunication companies can be risky because they primarily rely on television, Internet, and phone subscribers. AT&T has experienced some decline, but its mergers with Time Warner Cable and DirecTV throughout the years have favorably improved its outlook.
The company’s main concern is its excessive debt, but AT&T has publicly kept investors in the know about its strategy to decrease this as each year passes.
4. McDonald’s (MCD)
There are many fast food investment options in the stock market, but McDonald’s is the cream of the crop.
The company’s golden arches are one of the most recognizable logos in the world and McDonald’s is the highest grossing revenue restaurant on Wall Street.
In recent years, the fast-food chain has renovated many of its locations all over the globe as it continues to invest in itself while delivering promising results for long-term investors.
5. Waste Management (WM)
The truth is not all of us own a smartphone, eat fast food, or drive a car that uses gasoline. We all, however, take out the trash or recycle. Founded over 50 years ago, Waste Management is the largest trash collection and recycling company in the United States.
With no signs of slowing down and a strong portfolio to back it up, the company continues to experience a high return for its investors and even has a stamp of approval by Bill Gates.
6. UnitedHealth Group (UNH)
Healthcare is a lucrative industry and UnitedHealth Group continues to lead it as one of the giants in the field.
With that said, the healthcare industry can be tricky to navigate from an investment standpoint due to frequent political reforms year after year.
One of the company’s best investments is from the creation of Optum in 2011. The pharmaceutical subsidiary makes up nearly half of UnitedHealth Group’s annual earnings.
7. Microsoft (MSFT)
While Apple highly popularizes smartphones and portable computers, Microsoft still dominates an important niche — the business world. Although possessing a more simple and sometimes boring look, Microsoft has caught up to its competitors with diverse products in high quality.
The fact is most computer systems throughout the world link back to Microsoft programming one way or another. Most recently Microsoft’s value topped $1 trillion.
8. Walmart (WMT)
Walmart has traditionally been a popular option among consumers dating to before the craze of online shopping. The company’s kept up by catering to those who’d rather receive items on their doorstep instead of driving to the store by offering multiple delivery services.
The big-box store doesn’t limit itself to its brick and mortar locations. Walmart owns several other brands, including membership grocery store Sam’s Club and e-commerce company Jet.com.
9. Amazon (AMZN)
With that said, there’s one retailer even Walmart can’t fully compete with.
Although operating with no physical locations, Amazon has taken e-commerce to an unprecedented level. This is largely thanks due to its popularity among millennials and diverse retail options by partnering with small businesses.
The company’s membership program, Amazon Prime, charges $99 annually for free shipping and streaming services, bolstering the online retailer’s dominance since its founding in the mid-nineties.
The previously listed safe stocks to invest in are blue-chip stocks. Having this label means a company’s financial history and reputation gives it enough credibility to invest in with a large market cap to support it.
If you’re brand new to investing, penny stocks are a good starting option.
Typically, these companies are new, small, or on the verge of bankruptcy. Unfortunately, many scams take place through penny stocks, popularly portrayed in the 2013 motion picture The Wolf of Wall Street.
Investors should be cautious investing in penny stocks due to the unknown projection of a company from its vague information available.
Researching Safe Stocks to Invest In
The truth is, no stock is truly safe. No matter how careful you are, there is always risk involved when investing in the stock market.
This isn’t because companies with long-term success suddenly become negligent. It’s simply due to the unpredictability of the stock market itself. No company is safe from depression or recession.
The options listed above are not the only safe stocks to invest in. Many resources exist that study trends and growths in the stock market. Some people devote an entire livelihood by trading stocks.
It can be tempting to invest your money in hopes for a high return, but always be mindful of the risks. The general rule of thumb for investing in the stock market is only put in as much money as you’re comfortable losing.
Understand investing, at least in the beginning, is a long-term commitment. Don’t expect to wake up tomorrow with your money doubled. If it was that easy, everyone would do it!
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Shift Frequency © 2019 – A List of the Most Safe Stocks to Invest In