Best Stocks for Beginners With Little Money to Invest
Best Stocks for Beginners With Little Money to Invest
The stock market has been in the news lately for all the wrong reasons. Global uncertainty surrounding U.S. trade policy, and geopolitical tensions have put a damper on markets all year.
Furthermore, the Wall Street failed to anticipate the magnitude of President Donald Trump's global tariff regime. The result has been dismal, even discouraging, performance numbers from the major market indicators.
Still, investors – even beginners with little money to invest – can take heart. Although it may seem counterintuitive during times like these, equity investing for the long run is an excellent idea. Downturns, drawdowns and even bear markets are to be expected in the U.S. and global markets. History tells us that they can't be avoided but, with prudence, they can be taken advantage of.
The stocks that make up the S&P 500 index and other benchmarks are dynamic and nimble companies. They are equipped to react quickly to economic and market shocks, and have every incentive to find ways to make money for shareholders in every circumstance. Recall the global financial crisis of 2007-2009, and the COVID-19 pandemic of 2019-2021. Those events devastated the markets at first, but turned out to be excellent buying opportunities.
If you're a beginner with limited resources, the first thing you should do is identify how much money you can invest for the long run. Don't worry if you think you don't have enough money, the days of having to buy "round lots" – 25, 50 or 100 shares at a time – are long over. Today, investors can easily buy a single share of stock, and many brokerage platforms such as Robinhood Markets Inc. (ticker: HOOD) and Charles Schwab Corp. (SCHW) allow fractional share purchases that encourage small investors to get into the market without risking more than they can afford to lose.
Once you've decided how much to invest, the key to success is buying high-quality stocks that have superior track records through good times and bad. When possible, it also pays to choose stocks that pay income dividends, so you can share in a company's revenue and earnings while you wait for capital appreciation.
If you're new to investing but want to take advantage of the long-term growth potential of the stock market, check out this list. It includes five great American companies that are poised to lead a stock market recovery when it comes.
StockMarket CapitalizationForward Dividend Yield
Berkshire Hathaway Inc. (BRK.A, BRK.B)$1.1 trillion-
Verizon Communications Inc. (VZ)$185 billion5.9%
Allstate Corp. (ALL)$51 billion2.0%
Crown Castle Inc. (CCI)$46 billion5.9%
Conagra Brands Inc. (CAG)$13 billion5.2%
Furthermore, the Wall Street failed to anticipate the magnitude of President Donald Trump's global tariff regime. The result has been dismal, even discouraging, performance numbers from the major market indicators.
Still, investors – even beginners with little money to invest – can take heart. Although it may seem counterintuitive during times like these, equity investing for the long run is an excellent idea. Downturns, drawdowns and even bear markets are to be expected in the U.S. and global markets. History tells us that they can't be avoided but, with prudence, they can be taken advantage of.
The stocks that make up the S&P 500 index and other benchmarks are dynamic and nimble companies. They are equipped to react quickly to economic and market shocks, and have every incentive to find ways to make money for shareholders in every circumstance. Recall the global financial crisis of 2007-2009, and the COVID-19 pandemic of 2019-2021. Those events devastated the markets at first, but turned out to be excellent buying opportunities.
If you're a beginner with limited resources, the first thing you should do is identify how much money you can invest for the long run. Don't worry if you think you don't have enough money, the days of having to buy "round lots" – 25, 50 or 100 shares at a time – are long over. Today, investors can easily buy a single share of stock, and many brokerage platforms such as Robinhood Markets Inc. (ticker: HOOD) and Charles Schwab Corp. (SCHW) allow fractional share purchases that encourage small investors to get into the market without risking more than they can afford to lose.
Once you've decided how much to invest, the key to success is buying high-quality stocks that have superior track records through good times and bad. When possible, it also pays to choose stocks that pay income dividends, so you can share in a company's revenue and earnings while you wait for capital appreciation.
If you're new to investing but want to take advantage of the long-term growth potential of the stock market, check out this list. It includes five great American companies that are poised to lead a stock market recovery when it comes.
StockMarket CapitalizationForward Dividend Yield
Berkshire Hathaway Inc. (BRK.A, BRK.B)$1.1 trillion-
Verizon Communications Inc. (VZ)$185 billion5.9%
Allstate Corp. (ALL)$51 billion2.0%
Crown Castle Inc. (CCI)$46 billion5.9%
Conagra Brands Inc. (CAG)$13 billion5.2%
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Re: Best Stocks for Beginners With Little Money to Invest
Berkshire Hathaway Inc. (BRK.A, BRK.B)
Berkshire Hathaway might be the very best stock a beginning investor can buy. That's because it's a multinational conglomerate holding company. In other words, it's a company that owns large interests in other companies, and it's managed by one of the greatest minds on Wall Street, legendary investor Warren Buffett.
Buying Berkshire Hathaway is like buying into some of the best companies in the world while owning only a single stock. Berkshire owns insurance companies, logistics companies, public utilities, banks, high-tech firms, consumer goods companies – both defensive and discretionary – fintech firms and more.
In a timely and ultimately savvy move, Buffett began raising cash by selling carefully selected holdings in the middle of 2003. As a result, his company is flush with about $330 billion of cash on hand. If anyone can take advantage of a downturn, Buffett can. Shares are expensive – small investors may only be able to afford just a few – but, over the long term, they shouldn't be disappointed with the results.
Berkshire Hathaway has a market cap of $1.1 trillion.
Berkshire Hathaway might be the very best stock a beginning investor can buy. That's because it's a multinational conglomerate holding company. In other words, it's a company that owns large interests in other companies, and it's managed by one of the greatest minds on Wall Street, legendary investor Warren Buffett.
Buying Berkshire Hathaway is like buying into some of the best companies in the world while owning only a single stock. Berkshire owns insurance companies, logistics companies, public utilities, banks, high-tech firms, consumer goods companies – both defensive and discretionary – fintech firms and more.
In a timely and ultimately savvy move, Buffett began raising cash by selling carefully selected holdings in the middle of 2003. As a result, his company is flush with about $330 billion of cash on hand. If anyone can take advantage of a downturn, Buffett can. Shares are expensive – small investors may only be able to afford just a few – but, over the long term, they shouldn't be disappointed with the results.
Berkshire Hathaway has a market cap of $1.1 trillion.
Re: Best Stocks for Beginners With Little Money to Invest
Verizon Communications Inc. (VZ)
Verizon is a $185 billion wireless communications company that provides smart devices, mobile phones, associated services, broadband and high-tech equipment to 146 million paying subscribers. The company owns more than 1 million miles of fiber optic cable lines and another million miles of traditional coaxial cable. It's also an industry leader in emerging 5G mobile technology.
Even with all the turmoil and volatility of this year's stock market, VZ has appreciated more than 8% year to date. How was it able to achieve this? The market realized several months ago that Verizon is fairly isolated from Trump's announced tariff policies. Over 90% of the company's revenues come from customers inside the U.S., and VZ is primarily a service provider that is less dependent on imported goods than some of its peers.
Wall Street is looking for about $137 billion in revenue from VZ in fiscal 2025. Analysts are expecting that number to grow about 1.5% to over $139 billion in 2026. Additionally, VZ is currently paying a forward dividend yield of 5.9%.
Verizon is a $185 billion wireless communications company that provides smart devices, mobile phones, associated services, broadband and high-tech equipment to 146 million paying subscribers. The company owns more than 1 million miles of fiber optic cable lines and another million miles of traditional coaxial cable. It's also an industry leader in emerging 5G mobile technology.
Even with all the turmoil and volatility of this year's stock market, VZ has appreciated more than 8% year to date. How was it able to achieve this? The market realized several months ago that Verizon is fairly isolated from Trump's announced tariff policies. Over 90% of the company's revenues come from customers inside the U.S., and VZ is primarily a service provider that is less dependent on imported goods than some of its peers.
Wall Street is looking for about $137 billion in revenue from VZ in fiscal 2025. Analysts are expecting that number to grow about 1.5% to over $139 billion in 2026. Additionally, VZ is currently paying a forward dividend yield of 5.9%.
Re: Best Stocks for Beginners With Little Money to Invest
Allstate Corp. (ALL)
Allstate has a market cap of over $51 billion, making this Northbrook, Illinois-based, company one of the largest publicly traded insurance companies in the U.S.
What makes this stock suitable for beginners and small investors is its history of financial stability and sound management. The company reported $5.5 billion in operating income for 2024 and is estimated to generate $69 billion in revenue in 2025. Many investors consider Allstate a blue-chip company. This well-established firm has been around since 1931, and has proven its ability to thrive in good and bad economic cycles.
Allstate may be best known for its auto, home and casualty lines, but it has a solid presence in life insurance, annuities, investment services and retirement planning.
Allstate has increased its annual dividend every year for 15 consecutive years. The current annual forward dividend stands at $4 per share, which works out to a yield of 2%.
Allstate has a market cap of over $51 billion, making this Northbrook, Illinois-based, company one of the largest publicly traded insurance companies in the U.S.
What makes this stock suitable for beginners and small investors is its history of financial stability and sound management. The company reported $5.5 billion in operating income for 2024 and is estimated to generate $69 billion in revenue in 2025. Many investors consider Allstate a blue-chip company. This well-established firm has been around since 1931, and has proven its ability to thrive in good and bad economic cycles.
Allstate may be best known for its auto, home and casualty lines, but it has a solid presence in life insurance, annuities, investment services and retirement planning.
Allstate has increased its annual dividend every year for 15 consecutive years. The current annual forward dividend stands at $4 per share, which works out to a yield of 2%.
Re: Best Stocks for Beginners With Little Money to Invest
Crown Castle Inc. (CCI)
If you're a new investor, all the talk about tariffs and international strife may have you worried. That's why you should consider Crown Castle, even if you don't have much money to invest.
Crown Castle is a real estate investment trust, or REIT, that invests in our nation's digital infrastructure. Specifically, it owns more than 40,000 cell towers and about 90,000 route miles of fiber infrastructure that support its vast small cell network – that is, low-power antennas mounted on street lamps and utility poles. Virtually all of these valuable assets are located inside the U.S., making it much less vulnerable to the disruption caused by tariffs.
The company leases its network to the government and to mobile communication and broadband companies like AT&T Inc. (T), Verizon, T-Mobile U.S. Inc. (TMUS) and others. It routinely generates more than $20 billion in revenue a quarter.
The stock has a current forward dividend yield of 5.9%.
If you're a new investor, all the talk about tariffs and international strife may have you worried. That's why you should consider Crown Castle, even if you don't have much money to invest.
Crown Castle is a real estate investment trust, or REIT, that invests in our nation's digital infrastructure. Specifically, it owns more than 40,000 cell towers and about 90,000 route miles of fiber infrastructure that support its vast small cell network – that is, low-power antennas mounted on street lamps and utility poles. Virtually all of these valuable assets are located inside the U.S., making it much less vulnerable to the disruption caused by tariffs.
The company leases its network to the government and to mobile communication and broadband companies like AT&T Inc. (T), Verizon, T-Mobile U.S. Inc. (TMUS) and others. It routinely generates more than $20 billion in revenue a quarter.
The stock has a current forward dividend yield of 5.9%.
Re: Best Stocks for Beginners With Little Money to Invest
Conagra Brands Inc. (CAG)
Beginners to equity investing may want to start with a stock in the consumer defensive sector of the economy. Consumer defensive stocks tend to be less volatile some stocks in other, more sensitive sectors. They represent companies that produce essential goods that consumers generally won't cut back on when or if economic times get tough.
Conagra is just such a company. It's a $13 billion, Chicago-based leader in groceries and packaged food products. In short, it's a major player in the food industry. Regardless of what the economy or the stock market does, people still have to eat, and 91% of the company's sales come from inside the U.S.
The company has four main divisions: grocery and snacks, which includes shelf-stable snacks and canned goods; refrigerated and frozen food, made up of frozen meals and side dishes; food services, which sells ingredients, meals and sauces to the restaurant industry; and international, selling branded food products outside the U.S.
All 38 of the company's processing and distribution facilities are located in the U.S., making it almost immune to tariff pressure.
Another thing that makes this stock attractive to beginners and experienced investors alike is its 5.2% current dividend yield.
Beginners to equity investing may want to start with a stock in the consumer defensive sector of the economy. Consumer defensive stocks tend to be less volatile some stocks in other, more sensitive sectors. They represent companies that produce essential goods that consumers generally won't cut back on when or if economic times get tough.
Conagra is just such a company. It's a $13 billion, Chicago-based leader in groceries and packaged food products. In short, it's a major player in the food industry. Regardless of what the economy or the stock market does, people still have to eat, and 91% of the company's sales come from inside the U.S.
The company has four main divisions: grocery and snacks, which includes shelf-stable snacks and canned goods; refrigerated and frozen food, made up of frozen meals and side dishes; food services, which sells ingredients, meals and sauces to the restaurant industry; and international, selling branded food products outside the U.S.
All 38 of the company's processing and distribution facilities are located in the U.S., making it almost immune to tariff pressure.
Another thing that makes this stock attractive to beginners and experienced investors alike is its 5.2% current dividend yield.