Three starter stocks for the long term-Part I
"I want to invest, I'm just not sure where to start." That is the biggest reason I've encountered over the years as to why people do not invest in the market. Well I'm here to fix that with the first of three articles designed to give the new investor a solid long term portfolio that will grow for years to come.
There are many important things to consider in building a portfolio for the long term. But since we're beginning here I'll keep it simple. The goal is to select good companies in a variety of sectors that have solid track records, great management, and promising long term prospects.
Johnson and Johnson (JNJ) is a solid company that has grown over the years and paid increasing dividends while maintaing that exceptional growth. It has a very stable business model for the health/pharma industry and it's price is very attractive at $62.03 with a yield of3.93%.
AT&T (T) is my wireless/telecom selection. It has worldwide operations and stable earnings that should continue to grow as more and more people gain access to wireless services all over the world. Although it hasn't pulled back at all during the recent downturn, indicating it has a stable business model, I'd still consider it a good buy at $34.12. The 5.16% yield, coupled with a history of raising dividends, should provide some good returns over the long run.
Kimberly Clark (KMB) is a name many beginners might not be familiar with. But you know their products I'm sure. They make Huggies, Kleenex, Kotex, and Depends to name just a few. Therefore, KMB represents my consumer non-cyclical sector. It sells it's products worldwide in over 175 countries. People will always need these products. Currently KMB is trading at $78.42 and yielding 3.78%.