Stocks to buy

Our 3 Top Stock Picks for Beginners in 2023

What a difference a few years can make! During the pandemic, several million newbie investors entered the markets and changed the course of history. However, a smaller group of investors is looking toward stock picks for beginners in 2023. Many people are still afraid to enter this market because they know it’s risky.

However, if you are a newbie investor and missed the hurrah days of 2020 and 2021, do not fret. You can still see if you have the investing bug by pouring capital into the stock picks for beginners as we head toward 2023.

It is not an investment category in and of itself. Instead, stock picks for beginners are companies that offer stability and consistency if you want to start your investment journey in 2023. Yes, they will not offer the explosive growth of most high-octane investments. But you can sleep easy, knowing that the fundamentals underpinning your stock are robust.

The following three stocks are companies offering tremendous stability if you are an investor looking for stable growth and investments.

COST Costco $483.02
HD Home Depot $320.48
KO Coca-Cola $63.14

Costco Wholesale Corp. (COST)

Source: ilzesgimene / Shutterstock.com

Costco (NASDAQ:COST) is a discount wholesaler that offers its customers a wide range of goods at lower prices than other retailers. The company has been in business since 1976 and has become one of the largest retail chains in the world.

Even as other companies buckle under recessionary pressure, Costco continues to do well. The company made a major move with its third-quarter earnings and will likely remain a major player in the marketplace. Inflation continues to be challenging, but COST should do well going forward thanks to continued expansion and strong results.

However, mixed fiscal first-quarter 2023 results are dampening the mood recently, but there is reason to cheer as well. Membership-fee revenue stands as the bulk of its earnings, and it’s slated for an increase, which will make investors very happy.

Finally, there is an incentive for investors to pick up Costco for the regular dividend it pays to its investors. Although it is not very high, there are times when Costco has rewarded its investors with special dividends. The last time this happened was in 2020.  That will keep investors coming back again and again.

Home Depot (HD)

Source: Rob Wilson / Shutterstock.com

Home Depot (NYSE:HD) is the world’s largest home improvement retailer and is growing rapidly. The company’s stock price has soared over the past five years as investors have been rewarded for their patience with a steady stream of solid earnings.

Home Depot may be your best bet if you’re looking for a supply chain leader for the long term. It’s proven to meet customer demand in a decelerating growth environment. Its third-quarter results highlight this fact.

In the last quarter, sales increased by 5.6%, while comparable sales rose by 4.3%. This led to an increase in profit per share from $3.92 to $4.24. You might say, well, these numbers aren’t all that impressive.

Recently, Home Depot has seen its stock distribution increase by 15.2% to $1.90 per share, giving it a yield of 2.37%. For 13 consecutive years, the home improvement retailer has hiked its dividend distribution, a very healthy track record, considering the number of issues that have plagued the stock market during these times.

Coca-Cola (KO)

Source: Fotazdymak / Shutterstock.com

Investing in Coca-Cola (NYSE:KO) stock is often a sound choice for beginners because it has been one of the most reliable stocks since its public offering in 1919.

Even during market volatility, Coca-Cola has held its value and delivered solid returns. Moreover, Coca-Cola maintains a strong dedication to innovation and sustainability, which may propel its value further in 2023.

Those seeking an easy entry into the stock market should consider Coca-Cola an excellent first purchase — combining conventional wisdom with long-term potential, it’s tough to beat.

Despite commodity prices being hard to predict, Coca-Cola succeeded with 16% revenue growth in Q3. The unit volume also rose by 4%. This is a positive sign for the company in light of price increases. Consumers are willing to pay more for their favorite products, showing their loyalty to the brand.

At the same time, Coke has been doing much for price-conscious consumers in recent years. Single-sized cans and smaller bottles have helped keep Coca-Cola prices down in developing markets by utilizing returnable bottles, which can then be reused or repurposed. This helps reduce the cost of materials and lessens the environmental impact of their operations.

In light of the company’s recent efforts and diversified business model, it is no surprise that Coca-Cola is a Dividend King. It has hiked its dividend distributions through sixty years. Few companies shine as brightly as Coca-Cola among stock picks for beginners in 2023.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

Articles You May Like

454 TIP. Current Investment Opportunities w/ Tobias Carlisle
3 Little-Known Stocks to Buy Now or You’ll Be Kicking Yourself Later
Op-ed: Salesforce appoints ValueAct’s Morfit to its board and a proxy fight may loom ahead
Directional Vertical Strategy with Protection from a Shorter Duration Vertical (Members Preview)
The 3 Most Undervalued Stocks in India for Your February Buy List