What are the Best Stocks to Buy for Beginners?
When it comes to investing, beginner investors should always start investing with patience and time to get suitable returns on the investment in the stock market. To achieve success, one should follow some calculated steps in case of a long term venture. For beginners, it is quite a bad idea to start investing with high beta stocks. The chances are high that investors after investing high may fail to recover the money from the share market.
Therefore, budding investors should try to start with a low-risk stock of low amount. Never let disappointment of loss prevent you from investing in the market further. So, it is better to focus on quality stocks that can yield high returns. When looking for steps for investing in stocks for beginners, it is better to try with safe stocks that can offer good dividends along with better protection. So, beginners can start their investments with companies like Tata Motors as it is seen that brokerages have raised the target price of the company. As per the recent news, Tata Motors share price jumped from 16.5% to 147.95% based on BSE. Checking the share market price before investing in the company shall help you immensely which in turn can give you better returns.
Best Shares for Beginners in India
When looking for the best stocks for beginners in India the following options shall help you get suitable returns on your investment.
Yes Bank Shares
The quarterly numbers of Yes Bank have surprised the market as it has reported a loss of rupees 1507 crores. Analysts quickly reduced the stocks as the shares were dropping to rupees 95. As of now, the share prices have dropped from rupees 97 to rupees 404. The CEO of the bank has decided to adopt a conservative approach that shall help the long-term shareholders of the company. As the bank is suffering some bad quarters, it can be expected that by 2020-2021, Yes Bank can report EPS of rupees 10. This will make the stock price inexpensive based on its current price of rupees 94. Therefore, this can be considered a good share for beginners to invest in the share market on a long-term basis.
With a great track of offering high dividends, Hindustan Zinc is a suitable option for beginners planning to invest in the share market. In the last year, the company declared a dividend of rupees 20 per share when the dividend yielded to 9.24%. As the company is planning to boost its production in the coming years, it will surely have a positive impact on the financial year for the coming years. As this is a debt-free and rich company, investing in it will be the safest bet as the best stocks for beginners 2020.
Jagran Prakashan is offering leading business services in different genres. The Dainik Jagran is among the most read newspapers in big cities. In addition, the print business of the company is growing fast. It is further seen that the radio business is doing well with extended margins. As per the Music Broadcast, there has been a substantial growth in the margins offered by the company in the last quarter ending compared to the previous year. Further, it is known that the company does an EPS of Rupees 10 during 2019-20, the stock price should be P/E of 20 times from the previous year. The stock of the company has the potential to move up to rupees 200 from the present level. Also, the company is offering high return offers to investors and therefore, it is worthy to buy long-term investment stocks.
Best share to buy apart from Indian companies
When wondering about the best shares to buy for beginners in India 2020, Facebook is among the leading social network company that offers high dividend returns. As of now, this company is dominating the digital world and it is well-positioned in the competitive market to maintain a stable position and continue to grow in the stock market. Even after getting involved with negative press news, investors can rely on Facebook when it comes to investing in the stock market. The company makes 97% to 99% from revenue and during the first quarter of 2018, the number of active users has also increased.
Therefore, when looking for the Best Stocks for Beginners, the above-mentioned options shall help to get suitable returns. Research the market well and analysis the financial condition of the company before investing in it. In a similar way, Infosys share price has dropped by 2.63% in recent times. If investors are planning to invest in this company, they should research well about the condition of its stock market.
Wal-Mart Stores is a retail store that can be considered as a steady pick. The company has been investing in e-commerce with efforts that have been rewarded. As of 2016, the sales of the company have risen to almost 36% as compared to its previous years.
It is one of the global leaders in the E-commerce market which is not only growing at a rapid pace but its online sales are also mounting fast. The prime members of the site spend more time compared to the non-members making it a successfully running company. Further, it is seen that the stock price of the company has good prices irrespective of its metric valuation. Even it is seen that the stocks have experienced high valuation in the past due to the faith of investors in the CEO of the company who is continuing to grow the business at a fast pace.
Things to consider before investing
Beginners should consider the following points when they wish to invest in the stock market.
Considering an emergency fund – With the help of the emergency fund, it becomes easy to pay for any urgent expenses in case income is interrupted. The main aim motive is to set aside some extra money that is enough to cover up to three to six months of expenses when planning to invest in the stock market for the first time.
Arranging money for initial stock investment in the share market – By deciding the right amount of money to invest, you can arrange for the initial investment.
Having a stock brokerage account as it helps to bag in better discounts – Even for investing a small amount, it is better to start through a brokerage account.
Apart from the above-given points for investing, you can also come up with some other important considerations that might help you invest as a beginner and can get you fruitful results. We have provided some of the best stocks with reference to the market scenario; it’s totally up to you if you want to move forward any of them. Talking to experienced investors can also fetch you a good knowledge of the subject. You can start investing whenever you feel like you are ready as the famous saying goes, ‘Better late than never!’