In this video I'm going to talk about the best stocks you can buy as a beginner going
into 2018. Stay tuned. Welcome back to WhiteBoard Finance. My name is Marko and I'm here to
help you master your money and build your wealth. Today we're talking about the best
stocks that you can buy as a beginner going into 2018 and beyond. The reason I chose to
do this video is because the channel is really starting to grow and I'm getting a lot of
people that are DM'ing me on Instagram and also reaching out to me on YouTube asking
Hey Marco what are the best stocks that you can buy as a beginner or how do I get started
investing in the stock market. So why did I choose these stocks. The reason I chose
these five stocks is because they're all blue chip stocks with a strong dividend.
So blue chip essentially means that it's a large well-established company that's financially
sound and then it's been operating for many years. So these aren't going to be some fly
by night IPOs initial public offerings. These are going to be well-established long lasting
companies that have a consistent track record of quality. You know and why the dividend
factor. So overall stocks that pay out a dividend or have enough money on their balance sheets
to give out and pay out a dividend. They perform better weathers through better economic times
or worse economic times versus their counterparts that don't actually pay out a dividend that
are mostly focused on growth. So there's nothing wrong with growth stocks. I actually invest
in a lot of growth stocks. But for beginners I want to make sure that these stocks are
to be consistent and not that volatile and that they pay you a dividend which brings
me to my third point volatility.
Again these are companies that are going to be slow and steady that win the race. They're
not going to be companies that grow you know 100 percent a year we are doubling your money
like crazy but they can also go down you know 50 60 percent a year as well. The volatility
is low in these five stocks that I chose. So without further ado let's get into the
first stock. Number one is Apple whether you're a fan of Apple products or not. You have to
admit that this stock has been a winner over the past few years. It's a must own stock
in my opinion especially in a well diversified portfolio. Apple's going to be a great technology
and growth company stock they have in your portfolio and I see myself owning this for
the long term.
The reason I like Apple is because lately they've been obsessed with returning cash
to their investors. They've done this through stock and share buybacks and also through
dividend increases. If you take a look at the numbers their one year returns have been
about forty nine point six percent just right under 50 percent and the five year returns
have been a hundred and thirty one percent. This means that for every dollar you invested
in Apple over the past five years you're getting back a dollar 31 in profit which is pretty
crazy especially for an established company like Apple. P E ratio is actually pretty low
especially for a tech stock. It's nineteen point zero five. And for those of you that
don't know what AP ratio means this is essentially the price to earnings ratio on a stock.
That's the price of the stock divided by their earnings. All in all I think Apple is going
to be a great pick for the long term. And again it's going to be a staple in my portfolio
for 2018 and beyond. Number two Visa Visa is almost the definition of a blue chip stock.
It's one of the 15 most valuable companies in the world and it has a huge market share
and it is highly profitable with high barrier to entry. And just a quick tip when you hear
a high barrier to entry in the investing world we like to call this the moat. So when you
think of a castle think of the water around it that's called the moat that makes it difficult
for invaders or competition to actually take over that stock and eat up that company's
market share.
So keep that in mind. Visa has a huge moat in the credit lending industry. Their global
market share with about 300 and 23 million active accounts actually dominates their next
nearest competitor which is MasterCard who only has about a hundred and ninety one million
active accounts. Their dividend yield is not the strongest but it's always been increased
year over year. For the most part right now it sits at about point 6 9 percent but again
it has been increasing year over year. And I think Visa especially with this new tax
bill is going to make it a priority to raise that dividend yield their one year return
has been about forty three and a half percent and their five year return has been a hundred
and ninety percent which has been insane.
So again over the past five years for every dollar that you put into visa you're getting
back a dollar 90 in profit which is excellent. They're a great stock with a straight excuse
me with the steady growth track and they've been doing it for years. And I think that
Visa is going to be sitting in my portfolio for at least the next two years if not longer.
This is a great stock for beginners in 2018 and beyond. Number three Texas Instruments.
So if you remember in school when you guys used to play snake on those TIAA 83 calculators.
That is a Texas Instrument product but they do so much more than that. They've been around
since 1930 and it currently a hundred billion dollar company today. They're still growing
at a healthy rate which is pretty crazy given that they've been around for about 87 to 90
years.
Their revenue is expected to increase almost 12 percent in 2018 which is huge for a company
that's this old. They're a leading supplier and rapidly transforming automotive and industrial
sectors. And they've raised their dividend consecutively for 13 years. That's awesome.
That means that they're managing their money effectively because they're able to raise
that dividend consistently over a long period of time. They've also focused on buying back
some of their outstanding shares. Kind of like Apple was doing as I mentioned earlier.
So this decrease is dilution the means that the company doesn't have as many outstanding
shares. So for example in 2004 there were about one point seven billion outstanding
shares of Texas Instruments and in 2017 that number was brought down to about a billion.
That's pretty solid. Their dividend yield is a very healthy two point 3 8 percent.
Their one year returns have been about 41 percent and the five year returns have been
218 percent. You've been doubling your money over the past five years with Texas Instruments
which is pretty insane. There's few other stocks that offer this kind of a fat dividend
with such an opportunity for growth. So that's why Texas Instruments is number three on this
list. Number four Johnson and Johnson. So when you think of Johnson and Johnson you're
probably thinking of the baby shampoo. At least that's what I think of when I hear chants
of Ben Johnson. But you have to realize that Johnson and Johnson is arguably one of the
most diversified and consistent stocks available today. They've raised dividends 54 years in
a row. Let me repeat that they've consistently raised dividends 54 years in a row.
This makes it a long term pillar in any portfolio if you ask me. Johnson Johnson has sustainable
growth through diversification excellent management and mergers and acquisitions of competitors.
So let's take a look at their dividend yield dividend yield is also right in that 2.0 3h
2.0 for neighborhood as well as Texas Instruments was and then you have one year of twenty one
point eight percent returns in a five year of almost 100 percent returns. Again you're
doubling your money which is insane for such a strong company like this. Johnson and Johnson
is definitely a staple in my portfolio. They're not going to be a sexy stock it's going to
be a very boring stagnant stock. But even with a Fed dividend yield and growth that
we've seen over the past five years you best believe I'm going to be a big advocate of
Johnson and Johnson for the long term.
Number five Microsoft. So I personally work for one of the biggest Microsoft partners
in the Midwest of the United States if not the biggest partner of Microsoft. But that
is not swaying or making my decision biased whatsoever. I took a hard look at Microsoft
and they have a lot of service areas that have huge margins. So a lot of their biggest
service areas are cloud earpiece and software that stands for enterprise resource planning
software. So think of software that runs big business so manufacturing firms chemical laboratories
food manufacturers things like that and also Office 365 Office 365 is a big part of their
business and that's actually one of the products that I sell personally. They're incentivizing
their sales people to sell cloud. So I know this because I was on one of their sales calls
as a sales person and Microsoft is making a direct push to compensate their reps to
sell more dynamics 365 and cloud based solutions.
And also the reason I pick this stock for 2013 for beginners is because they are consistently
raising dividends so they're not focused 100 percent on growth even though it has been
in the growth sector. Their Dividends are nice and fat and they've consistently been
raising them so their dividend yield is one point ninety five percent. Their one year
returns have been thirty five point two percent and their five year returns have been 224
percent which has been insane. So Microsoft in my opinion is a long term hold. A lot of
people got in right around 50 60 dollars a share. Right now it's sitting in the mid 80s.
I think that for 2018 Microsoft may see triple digits in their stock price.
That's just my personal opinion. So is definitely going to be my portfolio for 2018. And as
a beginner I would recommend Microsoft as well. These are the best beginner stocks for
2018. But you also need to do your own due diligence and take a deeper dive in all five
of these stocks that I mentioned. Investing is a long game. It's not a get rich quick
scheme. I know a lot of people that are investing over the past I don't know seven or eight
years. They think that whatever they buy is going to go up because we've been in such
a crazy market. You really need to dig a little bit deeper and look at fundamentals and the
financials of these companies. I have dug deeper into these five stocks and that's why
I do recommend them.
But again you need to do your own due diligence. The market is like a roller coaster. You only
get killed if you get off halfway. So think of this as a long game even if your stocks
do go down. Don't jump off the ride you need to keep investing consistently because then
you're dollar cost averaging what you're buying at highs you're buying at lows and you'll
end up somewhere in the middle. But overall for the better in the long term. Thank you
so much for watching. If you got any value out of this video whatsoever please hit the
subscribe button below and share these videos with your friends and your family if you think
they're valuable. I do have a question of the day out of these five stocks which are
you investing in. I'd be happy to hear your opinions below. Thank you so much and have
a prosperous day. Ok bro this is what I'm going to do.
I've heard about this investing thing. I'm going to buy one bitcoin right now. It's not
like ten thousand dollars tomorrow it's going to be like 23. And with the difference with
that 13 difference I'm going to buy. Yeah I'm going go on margin on my margin account.
There were like three limbos get three Lambos already parking in my garage full of knowledge
knowledge now.