5 Best Stocks to Buy if You Have $100 to Spend – InvestorPlace

My son turned an investor this 12 months, taking a job that pays greater than his single, frugal life-style consumes. He requested me what shares he would possibly purchase with simply $100. It was a troublesome query. Finding the very best shares for $100 presents a number of distinctive challenges.
The simple reply is, if a dealer permits it, to purchase fractional shares of the very best firms. Buy some Amazon (NASDAQ:AMZN). Get some Microsoft (NASDAQ:MSFT). Get them whereas they’re low-cost and let time work its magic.
But for InvestorPlace, I made a decision to make issues more durable on myself. Where are 5 shares, every costing lower than $100 per share, that ought to ship good points down the street?
They’re ranked right here from secure to speculative. If you’re constructing a protracted-time period portfolio, you need each. I prevented shares I personal that some rank extremely, like Upstart (NASDAQ:UPST) and FuboTV (NYSE:FUBO), as a result of I don’t need to shill for issues which have misplaced me cash.
I additionally prevented ETFs, though if you will get a fractional share of one thing just like the iShares Biotechnology Fund ETF (NASDAQ:IBB) you’re on prime of your era’s largest pattern. Companies like Moderna (NASDAQ:MRNA) and CRISPR Therapeutics (NASDAQ:CRSP) make the threads of life simpler to manipulate, however as with PC shares from the Nineteen Seventies most will fail.
Instead, I assumed again to the primary desk I flew in 1978, on the Houston Business Journal. I used to be newly married, stuffed with piss and vinegar, but in addition didn’t need to waste a dime. Not all these firms had been round in 1978, however you get the final concept.
Here’s what I discovered.






Coca-Cola (KO)

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For 100 years, Coca-Cola (NYSE:KO) has been a frontrunner in water therapy, to guarantee consistency in its merchandise. That additionally describes its monetary efficiency. The firm has been paying constant, rising dividends for effectively over 50 years.
On July 5, that meant a quarterly payout of 44 cents/share, yielding 2.73%, Five years in the past the payout was 37 cents. Ten years in the past, it was 25.5 cents. That is the magic of dividends. If you had purchased this inventory 10 years in the past when its worth was $39, you’ll now be getting 4.5% return on that funding, plus a capital achieve.
You will be as sure of returns in your Coca-Cola funding as within the truth your subsequent Coke received’t make you sick. Under James Quincey, CEO since 2017, Coca-Cola has moved to serve its sugary drinks in smaller cans, purchased England’s Costa Coffee, minimize its product line in half and sought partnerships with social media stars like music producer Marshmello and actress Kate Moss.
It’s not attractive. it’s not hip. it doesn’t generate quick development. But it’s secure and worthwhile. If you’re going to grasp onto a inventory for many years, that is what you need.

AT&T (T)

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AT&T (NYSE:T) realized a tough lesson over the past decade. Stick to what you recognize.
Assuming it doesn’t overlook that lesson, what it is aware of ought to yield a constantly worthwhile enterprise. AT&T sells web bits, largely by way of cell networks. This is a worthwhile enterprise. The firm minimize its dividend almost in half within the spin-off of Warner Brothers Discovery (NASDAQ:WBD) and noticed its inventory worth fall. But what’s left has much less debt, a yield of 5% and a transparent path to development.
It’s not difficult. The downside is that former CEO Randall Stephenson thought it was, believing the corporate wanted to personal the content material of its bits to maximize earnings. Under his successor, John Stankey, AT&T is again to operating cell and wired broadband networks, which provide internet margins of 10%.
Thanks to 2022’s bear market, $100 buys you almost 5 AT&T shares. It’s arduous to see a safer funding going ahead, except Stankey will get bold.

PayPal Holdings (PYPL)

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PayPal (NASDAQ:PYPL) turned the “Kings of Fintech” throughout the pandemic, as early investor Elon Musk was turning into the world’s richest man at Tesla (NASDAQ:TSLA). (Tesla is down by 29% in 2022.)
It’s not all the time good to be the King. PayPal has misplaced 61% of its worth within the first half of 2022, greater than double the lack of the Nasdaq. Investors have soured on monetary know-how or fintech shares. Fintechs use fairness for development, whereas banks use deposits. When rates of interest rise, a fintech’s capital prices improve quicker than these of a financial institution, which is just paying curiosity on buyer deposits.
The major PayPal enterprise is funds, linking purchaser and vendor accounts and shifting cash cheaply. That enterprise ought to decide up with international development. Its flirtation with cryptocurrency additionally hurts it. But its issues are brief time period issues. Seeing such issues solved and development returning is one thing a younger investor can speculate on.
Analysts are perplexed and proceed to advocate PayPal inventory. The firm did see one-third much less revenue on 8% extra income in March than within the prior 12 months. But its franchise stays sound and its worth to earnings ratio is now at 24.

Roku (ROKU)

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Roku (NASDAQ:ROKU), which sells streaming {hardware} and runs an advert-based mostly streaming community of its personal, has been hit almost as arduous as PayPal in 2022, down 59%. The inventory would have value you almost $500 final July. Now it’s on sale at about $94.
At that worth, the $12.8 billion market cap is lower than one-fifth of its trailing 12-month advert income. But that dependence on promoting resulted in a lack of $26 million for the primary quarter, earnings had been almost 9% of income in 2021. A partnership with Walmart (NYSE:WMT) is bringing “shoppable” adverts to its Roku streaming channel, matching one thing Amazon can also be experimenting with.
The partnership illustrates the promise and peril of Roku inventory. It’s competing straight with Amazon, in addition to Alphabet (NASDAQ:GOOGL) and Apple (NASDAQ:AAPL), in streaming {hardware}. On the opposite hand, it’s the one unbiased in its enterprise, and another firm that desires a spot in that world must be eyeing it. This contains retailers like Walmart, leisure giants like Disney (NYSE:DIS) and even laptop {hardware} firms.
This places a ground below Roku’s inventory worth. Founder and CEO Anthony Wood controls Roku’s voting inventory and not too long ago dismissed rumors he would possibly promote to Netflix (NASDAQ:NFLX). But at any time when he modifies his thoughts, the ensuing takeover battle will make you cash.

AppHarvest (APPH)

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There are some ways for a protracted-time period investor to become profitable. You should purchase security, as with Coca-Cola and AT&T. You should purchase shares after they’re low, like PayPal and Roku. Or you may speculate on the longer term, taking massive dangers in hope of huge reward.
AppHarvest (NASDAQ:APPH), which has at occasions seen its worth below $4 not too long ago, is such a hypothesis. The market cap is simply $470 million. Revenue final 12 months was simply $9 million. But it is a guess on altering the world.
AppHarvest runs indoor farms. These are closed-loop programs that may be situated inside cities, that use 90% much less water than outside farms, and have sensors to exactly management vegetation that yield 30 occasions extra meals than on conventional farms.
The firm, based mostly in Morehead, Kentucky, reported gross sales of $5.2 million within the first quarter, and estimates $24 million to $32 million for the 12 months. It’s constructing three new farms as well as to its Morehead facility, increasing from tomatoes into berries and salad greens. It misplaced $26 million within the first quarter however ended it with $98 million in money, $58 million in credit score, and an untapped credit score line with $100 million extra.
Once AppHarvest exhibits a revenue in Kentucky, it is going to be in place to replicate that success in cities across the nation and the world.
On the date of publication, Dana (*5*) held lengthy positions in GOOGL, AMZN, UPST, FUBO, AAPL and MRNA. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.


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