10 Companies Everyone Should Own Stock In

Written by Sam on . Posted in Investing, Retirement. 69188 views.

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:

  1. Wal-Mart Stores, Inc.
  2. Coca-Cola.
  3. International Business Machines Corp.
  4. Chevron Corp.
  5. PepsiCo, Inc.
  6. Procter & Gamble Co
  7. Exxon Mobil Corp
  8. United Technologies.
  9. McDonald’s Corp.
  10. 3M.

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).

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