9 of the Best Stocks for a Starter Portfolio

To close off this weekend, I thought I'd get back to basics and offer something for beginners. This week's edition of U.S. News Invested fit the bill perfectly with a suggested starter portfolio that can't miss. As always, more detail on each company can be found by clicking on the link provided below. Hope everyone had a great weekend.  

10-14-21 9 of the Best Stocks for a Starter Portfolio | Investing | US News

9 of the Best Stocks for a Starter Portfolio

The best stocks for beginners tend to be well-established dividend payers.

By Matt Whittaker

Oct. 14, 2021, at 4:21 p.m.

Consider buying these nine companies for a solid start.

When you're first getting into the stock market, there are many factors to weigh. For example, should you buy individual stocks or funds that hold many companies? While exchange-traded funds and mutual funds should probably form at least part of your portfolio, they may not quite provide the same excitement as finding a company you believe in and putting skin in the game. But buying individual stocks means taking on more risk than with diversified funds. If you're wondering what the best stocks for beginners are, take a look at larger companies with long track records, solid fundamentals and strong balance sheets. You should pay attention to valuation metrics, such as a company's price-earnings ratio, but sometimes stocks are expensive for a reason. Here are nine stocks to consider for a starter portfolio.

Lowe's Companies Inc. (LOW)

Housing market fundamentals have been a shorter-term tailwind for Lowe's, but Dan Eye, chief investment officer at Fort Pitt Capital Group, says there's more to the story that makes the company a good longer-term play. The company is executing a turnaround strategy to become a better retailer. "Their strategy is working, and Lowe's is showing success in improving operations, increasing profitability, upgrading their online infrastructure and utilizing their labor force more efficiently," Eye says. The company is narrowing its operational performance gaps with rival Home Depot Inc. (HD) and offers a relative valuation discount that is an attractive entry point for Lowe's, he says. Additionally, the many aging homes in the U.S. will likely need more upgrades and repairs, he says.

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Nine of the best stocks to buy for a starter portfolio:

• Lowe's Companies Inc. (LOW)
• Lincoln National Corp. (LNC)
• Johnson & Johnson (JNJ)
• Alexandria Real Estate Equities (ARE)
• JPMorgan Chase & Co. (JPM)
• UnitedHealth Group Inc. (UNH)
• Alphabet Inc. (GOOG, GOOGL)
• Apple Inc. (AAPL)
• Microsoft Corp. (MSFT)