I don’t like investing in individual companies – they seem to go up when you think they’re doing poorly and go down when you think they’re doing well. Individual companies possess something called “Company-Specific” Risk which means their stock price is susceptible to risks such as lawsuits, management changes and other non-market factors.
While I don’t recommend exposing yourself to company-specific risk, you can decrease the chances of being burnt by individual companies by purchasing proven quality and diversifying. Here’s a list of 10 Companies that Everyone Should Own Stock In:
- Wal-Mart Stores, Inc.
- International Business Machines Corp.
- Chevron Corp.
- PepsiCo, Inc.
- Procter & Gamble Co
- Exxon Mobil Corp
- United Technologies.
- McDonald’s Corp.
Why own each of the above companies?Each of the ten companies are historically proven to survive market ups and down and pay a better-than-average dividend of around 3%. They’re big enough not to substantially increase or decrease with knee-jerk economic figures or industry fads. While you won’t get rich quick off of these (this should never be your goal) you will most likely see a steady increase in your retirement and/or brokerage account (this should be your goal).
Now for something cool: Looking for a way to own all of these stocks without having to spend the cost of buying each individually (remember, paying less in fees is one of the 18 Financial Tips I Wish Someone Told Me When I Was 18)? Look at Vanguard’s Dividend Appreciation ETF (Stock Ticker: VIG).
Tags: Individual Stocks
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