5 core stocks for new investors

If you’re looking for long term growth, stability and great dividends, look no further than these 5 stocks.

a woman

If you’re a new investor, or perhaps just new to the stock market, it can be a daunting experience because the learning curve appears to be really steep. Never fret, once you’ve got the basics down, you can start investing and try your hand for as little as $10 per trade.

The most important thing is just to get started. Consider building your portfolio starting with these five stocks. These companies are well known, reputable brands that have large market capitalisations, modest growth and pay great dividends while you wait — perfect for the long-term individual investor.

1. Telstra (ASX: TLS)

Telstra is about as ‘core’ as Australian stocks come. It’s likely to average strong single-digit growth in coming years, will pay a dividend of at least 28 cents fully franked and is sure to be around when you decide to cash out. Telstra has a beta rating of 0.5, meaning the stock price isn’t as volatile as the wider market, allowing investors to sleep easy at night.

2. Washington H Soul Pattinson (ASX: SOL)

This is one of the oldest companies listed on the ASX and perhaps one of the most consistent. Over the past 10 years, the stock price has delivered an average annual return of 11.9% plus dividends. The company achieves stable returns by dipping its fingers into many different pies. For example, it has holdings in TPG Telecom, Brickworks, New Hope Corporation, API, Ruralco and more.

3. Westfield Retail Trust (ASX: WRT)

Although modestly priced, trading on earnings around 15 times, Westfield Retail Trust will be a consistent earner for dividend-seeking investors. At current prices, it will pay a 6.3% yield (19.9 cents) but according to Morningstar, the dividend is likely to increase up to 21 cents by 2015.

4. BWP Trust (ASX: BWP)

Australian property group BWP is another consistent stock for new investors entering the market. Its portfolio, which consists largely of properties used by Bunnings Warehouse, is steadily growing and it pays a stable 6.3% dividend, which is likely to increase in coming years. BWP is considerably smaller than the other stocks listed above and, as a result, can be more volatile in its day-to-day share price movements.

5. WAM Capital (ASX: WAM)

WAM Capital is a company that invests in Australian stocks. It aims to: 1) deliver a rising stream of dividends, 2) provide capital growth, and 3) preserve capital – so far so good. In the past five years, the company has averaged a 22.5% annual return in its share price.

Foolish takeaway

Perhaps the most important thing new investors can understand is that stock market investing is a long-term pursuit. Buy good stocks cheap and hold for the long term but don’t be surprised if they drop by 10%, 20% or even 30% in the short term — as long as the core business has not changed, it’s unlikely to stay down forever.

Picking good stocks is hard and takes a long time but we’ll give you one for free! Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading

Motley Fool contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies.  

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »