Have a $1,000 but not sure how to get started with investing? Worry not. There are some simple and intriguing investments that anyone can make with a degree of comfort that the companies won't go bankrupt tomorrow. Here are a few names that seem like good plays if you're investing your first $1,000.
1. Ford
This might seem like a boring play, but Ford Motor Company's (F 0.30%) current dividend yield of 4.48% is intriguing in conjunction with its cheap valuation. Fresh off an earnings beat, Ford is sitting on $26.8 billion in cash, indicating that its dividend payout is safe.
In the third quarter, Ford reported automotive revenue of $47.19 billion, handily outpacing expectations of $43.08 billion. Adjusted earnings also beat expectations; coming in at $0.45 per share. This helped give this stock some extra mojo. In all, this is a slow and steady play. Ford grows modestly, but the stock has performed well this year, gaining about 36%.
Image source: Getty Images.
Like many auto stocks, Ford shares trade for cheap, at roughly 11.4 times earnings. That is admittedly a two-sided trend. On the one hand, it means that Ford shares aren't likely to skyrocket unless earnings really take off. On the other hand, you know that you're not getting caught overpaying.
Perhaps the biggest thing here is the $26.8 billion in cash that Ford has at its disposal. The automaker has plenty of dry powder to employ in its business. Couple that with the aforementioned dividend, and Ford seems like a compelling play.
NYSE: F
Key Data Points
2. JPMorgan
JPMorgan Chase (JPM +0.54%) seems like an obvious choice here. Over time, it has solidly outperformed the market, roughly doubling the S&P 500's return over the last five years. JPMorgan is positioned as the preeminent bank in America, if not the world. Even when it has a slower quarter, this bank is so established within the U.S. financial framework that the stock seems to get the benefit of the doubt from investors, as it doesn't falter very often.
Interest income has expanded steadily since 2021, and earnings have subsequently shown strength. As showcased in the third quarter, JPMorgan had a return on equity of 17%, and assets under management were up 18% year over year to $4.6 trillion. Earnings looked good in the third quarter, gaining 16% year over year to $5.07 per diluted share.
NYSE: JPM
Key Data Points
With a declining share count over the past five years, and consistent earnings, JPMorgan is a stock to ride over the long haul. Its dividend might not be huge, but it's the stock's performance over time that makes this such a compelling play.
3. Nvidia
Nvidia (NVDA 0.50%) has returned 40% to shareholders year to date. The chipmaker's position within the growing artificial intelligence (AI) industry has helped it gain a lot of attention, and revenue and earnings have grown exponentially over the last few years. With the world of AI seemingly not going anywhere but up, it stands to reason that Nvidia has continued upside ahead, even after becoming the first $5 trillion company.
The numbers are there. Second quarter revenue results were up 56% year over year to $46.7 billion. Net income increased a strong 59% to $26.42 billion. All this boils down to GAAP earnings of $1.08 per diluted share for shareholders, a 61% increase year over year.
NASDAQ: NVDA
Key Data Points
It's challenging to find a company that has produced bigger growth over the last few years, which explains why Nvidia became a $5 trillion company in market capital. Some might say, well that's too rich for my blood. While I would normally agree with that, I think Nvidia is an exception.
Even if it does pull back, this company is set up to provide chips and products for the AI space. As I said, this is seemingly going to be a big part of our future, which gives Nvidia a good chance of having increased demand for its products. I think this is one to buy and hold.
