New investors who are just starting out and building up their portfolios might feel overwhelmed with what to invest in these days. Many stocks are soaring due to artificial intelligence and other tech-related opportunities. Meanwhile, valuations are high across the stock market as a whole, and some stocks may not be appealing despite their strong performances.
This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.
Continue » Three dividend stocks, however, that can be excellent options that offer an appealing mix of value, stability, and high yields are ExxonMobil (NYSE:XOM), UnitedHealth Group (NYSE:UNH), and Verizon Communications (NYSE:VZ). Here's why these can be ideal investments for new investors. Investing in a top oil and gas giant such as ExxonMobil is a great move for investors for a few reasons.
First and foremost, it's a fairly stable investment, as the company's dominant position in the industry ensures that it may not only succeed under adverse market conditions but also thrive when oil prices are high, as they are now. The company's vast portfolio of assets and financial strength make it a fantastic long-term investment. Another great reason is its dividend, which currently yields 2.6%.
That's above the S&P 500 average of 1%, but it's admittedly a bit lower than usual for Exxon. The main reason it isn't higher, however, is because the stock has been doing so well -- it's up 34% since the start of the year. The company has also been raising its dividend payments for decades, giving investors ample reason to simply buy and hold.
Lastly, there's the inflation angle. For investors worried about inflation and seeking a potential hedge, investing in Exxon can be a good move, as it'll benefit from rising oil prices. That's why, overall, this can be a no-brainer option for new investors beginning to build their portfolios and seeking a top dividend stock, as Exxon checks many boxes.
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