There is no assurance that these stocks will do well over the long term because investing entails risk. But they all have traits that make them contenders for the title of top stocks for novice investors. Each one comes from a “defensive” industry, represents a firm worth at least $10 billion, pays shareholders a regular cash dividend, and is currently generating substantial profits based on the assets it owns.
Apple Inc. (AAPL)
- Shares were worth $132.76 as of June 14th.
- $2.169 trillion in market value
- Change so far this year: -25.24%
- Revenue in 2021: $365.82 billion
- Net profits in 2021: $94.68 billion
- Yield on dividends: 0.69%
Apple produces a wide range of consumer goods, including the Apple Watch, iPhones, and iMac desktops. Apple is the most valuable firm in the world in terms of market capitalization because of its devoted customer base and consistent innovation.
The Coca-Cola Co. (KO)
- As of June 14, the share price was $59.23.
- Capitalization: $258.39 billion
- Change so far this year: 0.03%
- Revenue for 2021: $38.655 billion
- Net profits in 2021: $9.771 billion
- Yield on dividends: 2.97%
Coca-Cola, a well-known investment of Berkshire Hathaway CEO Warren Buffett, is a wonderful illustration of a consumer staple that does well even during economic downturns.
Costco Inc. (COST)
- As of June 14: $454.80 per share
- Capitalization: $205.26 billion
- Change so far this year: -19.89%
- Revenue for 2021: $195.929 billion
- Net income in 2021: $5.007 billion
- Yield on dividends: 0.79%
One of the most popular retailers in the world, Costco is known for its low prices and “treasure hunt” atmosphere in its locations. Customers pay a membership fee only to purchase there, and in the fiscal year 2021, the renewal rate in the United States and Canada was an astounding 91%.
Home Depot Inc. (HD)
- As of June 14: $278.67 per share
- Capitalization: $296.92 billion
- Change so far this year: -32.85%
- The fiscal year 2022 revenue: $151.157 billion
- 2022 fiscal year net income: $16.433 billion
- Yield on dividends: 2.73%
Since the start of the epidemic, Home Depot has prospered as consumers have spent money to upgrade their homes. But the fact is that Home Depot has always been successful because there has always been a demand for home improvement supplies, and there probably always will be.
McDonald’s Corporation (MCD)
- On June 14, the share price was $238.76.
- Capitalization: $180.13 billion
- Change so far this year: -10.93%
- Revenue for 2021: $23.22 billion
- Net income in 2021: $7.545 billion
- Yield on dividends: 2.31%
A select group of stocks is referred to as “dividend aristocrats,” and McDonald’s is one of them. A corporation must increase its dividend each year for at least 20 years straight to qualify as a dividend aristocrat. Since being a publicly traded corporation, McDonald’s has increased its dividend every single year for 45 years in a row.
Royalty Pharma (RPRX)
- On June 14, the share price was $38.20.
- Capitalization: $23.54 billion
- Change so far this year: -4.14%
- Revenue in 2021: $2.289 billion
- Net income in 2021: $619.73 million
- 1.99% dividend yield
Late last year, Royalty Pharma made news when Warren Buffett reduced his holdings in pharmaceutical companies and added more than 13 million shares to Berkshire Hathaway’s portfolio. According to the company’s website, Royalty Pharma offers funding for clinical research in return for royalties and acquires royalty on product candidates that are in the last phases of clinical development.
Microsoft Corporation (MSFT)
- On June 14, the share price was $244.49.
- Capitalization: $1.914 trillion
- Change so far this year: -27.30%
- Revenue for 2021: $168.088 billion
- Net income in 2021: $61.271 trillion
- Yield on dividends: 1.01%
One of the biggest businesses in the world, Microsoft is responsible for the widely used Windows operating system that runs on computers all around the world. However, the corporation has shifted into high gear thanks to increasing cloud services sales and alliances with manufacturers of autonomous vehicles.
PepsiCo Inc. (PEP)
- Shares were trading at $156.12 on June 14.
- Capitalization: $216.21 billion
- Change so far this year: -10.13%
- Revenue for 2021: $79.474 billion
- Net income for 2021: $7.618 billion
- Yield on dividends: 2.95%
Another household name that pays a significant dividend and has a very healthy balance sheet is PepsiCo, Coca-main Cola’s rival.
Sysco Inc. (SYY)
- On June 14, the share price was $80.14.
- Capitalization: $41.12 billion
- Change so far this year: 2.02%
- Revenue for 2021: $51.297 billion
- Net income in 2021: $524.2 million
- Yield on dividends: 2.45%
Sysco, a company located in Houston, manufactures and markets food-related goods to the food service sector.
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