Types of Stocks

Now that you know the basics of a stock, let's go over some different categories of stocks. If you want to build out your own stock portfolio, it's not a bad idea to add a few from each category. This is what we call a "well-balanced portfolio".

Blue Chip: Large, stable stocks with an excellent reputation (i.e., Apple, Microsoft, Visa)

Growth: Stocks with rapidly growing earnings and revenue (i.e., Shopify, Square, Twilio)

Dividend: Companies that pay share holders based on earnings. Check out our dividend article (i.e., Coke, Mastercard, Exxon Mobil)

Cyclical: Stocks that are dependent on the economy’s health (i.e. Delta, Ford, Starbucks)

Defensive: Stocks that offer products always in demand (i.e. Johnson & Johnson, 3M, Walmart)

Speculative: Stocks that are extremely risky and volatile (i.e., AMC, GameStop, Tesla)

Thoughts? Questions? Drop us a message below.

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