Investing in stocks could be a good way to supplement your income, and the best time to start is now, so let’s look at some of the best stocks for beginners to consider this month.
Where Can I Buy Stocks for Beginners in June 2021?
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Which Stocks for Beginners to Buy in June 2021?
Since blue-chip stocks are considered best for beginners, we have compiled this list of the best blue-chip stocks for beginners to buy in June 2021:
1. Amazon.com (NASDAQ:AMZN)
Amazon is the world’s largest retailer. The company had a market value of about $1.69 trillion in June, and this stock has not swung into a loss in a full calendar year since 2014. In fact, Amazon stock has maintained a healthy annual return of at least 20%.
AMZN started as a small online bookseller but grew to become one of the world’s most disruptive companies in retail. It expanded over the years into several industries including video streaming, pharmaceuticals, and even groceries. AMZN chooses to reinvest earnings to boost growth rather than pay dividends, but is still one of the top stocks for beginners to buy.
2. Netflix (NASDAQ:NFLX)
As of 10th June, NFLX shares had pulled back 6.81% since the start of the year, but — like Amazon — Netflix stock hasn’t ended a year lower than it started since 2014.
The subscription-based video streaming service provider disrupted the entertainment industry by changing the way people watch TV. Netflix dominates the premium streaming services market with a global subscriber count of more than 207 million as reported at the end of the first quarter of 2021.
The company has huge growth opportunities to look forward to, which will help NFLX continue to reward investors on a year-over-year basis.
3. Facebook (NASDAQ:FB)
Facebook is the world’s largest social media company, and it continues to deliver top-line and bottom-line growth. FB’s stock price hasn’t closed lower than it opened in a calendar year since 2018, and in general, it has continued to deliver steady returns to investors.
As of 10th June 2021, FB shares had gained 23.62% for the year and had a price-earnings (P/E) ratio of 28.48. Facebook is still one of the cheapest internet stocks to buy at the current valuation, and the company has growth opportunities in video advertising which is yet to match the performance of the traditional display ads.
4. Procter & Gamble (NYSE:PG)
Procter & Gamble sells essential consumer goods. The company maintains consistent top-line growth which enables it to deliver steady returns to investors. It is one of the world’s largest companies, with a market cap of over $330 billion at the time of writing.
PG shares have risen more than 63% over the past five years. Its P/E is 24.98 and it has a dividend yield of 2.56%. This stock’s stable performance over the years makes it ideal for beginners.
5. Alphabet (NASDAQ:GOOG)
Alphabet is the parent company of Google, the world’s largest search platform. It adopted the name Alphabet because it wanted to expand to more markets. GOOG now has businesses in AI, healthcare, video streaming, payments, and cloud computing.
GOOG shares have gained 245% over the past five years and 41% so far in 2021. Its P/E ratio is 30.80. Alphabet’s diversification promises stability of results, making it a perfect stock for beginners.
6. Citigroup (NYSE:C)
The financial sector is a good area to go looking when getting started in the stock market. Citigroup, in particular, is a multinational banking institution that offers investors stability. Its shares have risen 81% in the past five years.
This stock has an attractive P/E of 10.55 and its dividend yield of 2.65% makes it one of the most exciting stocks for beginners to buy.
7. Coca-Cola (NYSE:KO)
Coca-Cola is the world’s largest soft drinks producer. It is one of legendary investor Warren Buffett’s favourite stocks, which should make it appealing to beginners.
The Covid-19 pandemic caused Coca-Cola to suffer one of its biggest ever price crashes last year but it has since recovered to recoup about three-quarters of the lost share price. In fact, KO shares have risen by more than 46% in the first five months of this year. With a dividend yield of 3%, Coca-Cola is paying investors more than they would receive in a typical bank deposit account.
8. Microsoft (NASDAQ:MSFT)
Like Amazon, Microsoft is a technology giant that promises steady returns and growth. The company has expanded the business over the years to encompass everything from computing devices to cloud services infrastructure. Its cloud business through Azure is a major growth catalyst.
Microsoft’s share price has risen more than 413% in the past five years, and the stock is up 18.17% in the first five months of this year. Microsoft stock has a P/E ratio of 35.01 and a dividend yield of 0.87%.
9. Berkshire Hathaway (NYSE:BRK.A)
Warren Buffett’s Berkshire Hathaway is one of the easiest stocks for beginners to decide to buy because of the company’s leadership. You can think of it as an investment fund managed by one of the best fund managers in the industry.
The problem is that, at first glance, Berkshire Hathaway isn’t an easy stock for beginners to buy because its Class A shares are priced at $427,000 price per share. The good news is that the same company’s Class B shares are priced at a more manageable $287-per-share, so most investors should be able to purchase at least a handful of shares. Either way, several brokers allow you to buy fractional shares, so you can buy shares that you couldn’t otherwise afford.
Berkshire Hathaway shares have gained more than 102% over the past five years and more than 24% so far in 2021.
10. Walmart (NYSE:WMT)
Walmart is the largest retail store chain in the US and has started to gain traction in online retailing in the last few years.
Walmart shares pulled back nearly 5% in the first five months of 2021 but there is room to recoup these losses and advance further before the end of the year. After all, WMT shares were up nearly 97% for the preceding five-year period and delivered steady returns year-over-year.
Walmart has a P/E ratio of 32.52 and a 1.57% dividend yield at the time of writing.
Why Buy Stocks for Beginners?
It is never too early or too late to get started in the stock market. You can choose to use an expert or make your own investment decisions. When getting started on your own stock-picking journey, it’s important to pick stocks that are suitable for beginners, which is why we’ve suggested some in this guide.
The Bottom Line
Although we’ve suggested some beginner-friendly blue-chip stocks, there are two more important things than stock-picking to consider when you begin your investment journey:
- Diversify by buying several stocks in different sectors so that your investment portfolio can’t be reduced to zero by any single stock going bust.
- Never invest with funds that you’ll need in the immediate future, and never allocate more than 2% of your available funds to any single stock.