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If you are an investor and you are interested in trading stocks, Wall Street might be able to point you in the right direction. The stocks mentioned below are attracting attention and it is important for you to take advantage of them.

When the economy slips into a recession and the stock market tanks, investors are naturally inclined to sell bank stocks. After all, during the last recession and bear market in 2008, bank stocks were the biggest losers. Some bank stocks even went to zero.

It should be no surprise, then, that bank stocks are tanking in early 2020, as the rapidly spreading novel coronavirus pandemic has brought the global economy to a screeching halt.

Year-to-date, many bank stocks are down 25% or more.

But, here’s the thing: not all recessions and bear markets are the same, and this isn’t 2008.

Back in 2008, banks were part of the problem. They had weak, overly levered balance sheets, with tons of risk. That risk was exploding all over the place, causing the economy to fall over itself. The government had to come in and save these banks from the apocalypse.

The situation couldn’t be more different this time around.

Now, banks are part of the solution. They have strong, asset heavy and highly liquid balance sheets, with mitigated risk. They’ve been prepping for a crisis like this over the past decade through multiple stress tests. And, in 2020, banks will actually be helping the government save other sectors of the economy.

Read Also: Make Money Online Through Stocks Trading

So, should bank stocks be down in 2020? Absolutely. The economy has come to a halt. The Federal Reserve has cut rates to zero, and the yield curve has inverted.

But, should bank stocks be falling like its 2008 all over again? Absolutely not.

Banks today are in much better financial position than they were in 2008. They will survive this crisis. They will help others survive this crisis. And bank stocks will ultimately rebound.

Which bank stocks are analysts most excited about right now? We screened the Russell 1000 Index for the top-rated small, midsize and large bank stocks. S&P Global Market Intelligence surveys analysts’ ratings on stocks and scores them on a five-point scale, where 1.0 equals “Strong Buy” and 5.0 means “Strong Sell.” Any score of 2.0 or lower means that analysts, on average, rate the stock a “Buy.” The closer the score gets to 1.0, the better.

Here are the 20 best-rated bank stocks that Wall Street is interested in.

  • Pinnacle Financial Partners
  • Banco Popular
  • Citizens Financial Group (CFG)
  • Sterling Bancorp
  • China Life Insurance (LFC)
  • Western Alliance Bancorporation
  • Universal Insurance Holdings
  • Huntington Bancshares
  • Berkshire Hathaway
  • KeyCorp
  • JPMorgan Chase & Co.
  • SVB Financial Group
  • NMI Holdings (NMIH)
  • SunTrust
  • Goldman Sachs Group
  • BB&T
  • Square (SQ)
  • Bank of America
  • Citigroup
  • AT&T
1. Pinnacle Financial Partners
Pinnacle Financial Partners

Market value: $4.3 billion

Dividend yield: 1.2%

Analysts’ average recommendation: 1.5

Shares in Pinnacle Financial Partners (PNFP, $55.86) are on a tear so far in 2019. PNFP is up more than 21% for the year-to-date, easily outpacing the broader market. Analysts believe the regional bank – which serves Tennessee, North Carolina, South Carolina and Virginia – is set to deliver outsize earnings growth.

Sandler O’Neill analysts, who rate the stock at “Buy,” note that “new revenue producers will continue to fuel future growth.”

The analyst consensus is for earnings to increase at an average annual pace of 32% for the next five years, according to Refinitiv data. No wonder Wall Street’s pros are so bullish on this bank stock, which reported its quarterly results after the April 15 close.

2. Banco Popular
Banco Popular bank

Market value: $5.1 billion

Dividend yield: 2.3%

Analysts’ average recommendation: 1.44

Analysts believe Popular (BPOP, $53.05) is poised for steady-if-not-spectacular growth. The regional bank serving Puerto Rico, New York, New Jersey and Florida is expected to deliver average earnings growth of 5% a year for the next half-decade.

Add in the healthy dividend yield, and you have a stock that Wall Street equity researchers are firmly behind. Analysts at Sandler O’Neill & Partners – which specializes in financial-sector analysis – rate BPOP stock at “Buy.” They say the bank’s “capital position remains extremely robust” and that “BPOP is set up for a very nice 2019.”

Popular’s stock is up about 12% for the year-to-date, lagging the S&P 500 by 3 percentage points. The next potential catalyst is its Q1 earnings report, which is expected to come out ahead of the April 18 market open.

3. Citizens Financial Group (CFG)
citizen financial group

Market capitalization: $8.5 billion

Year-to-date return: -49%

Small regional banks like Citizens Financial have been hit hard by the outbreak in 2020, and CFG, which began the year boasting a dividend around 3.6%, now pays more than a 7% dividend as shares have roughly halved year to date.

The company is suspending stock buybacks through the end of the year and had to set aside $463 million in the first quarter for expected loan losses due explicitly to the health crisis. The mid-Atlantic- and Midwest-focused bank has been impacted by exposure to retailers in addition to the increasingly struggling American consumer as record-setting job losses pile up.

4. Sterling Bancorp
Sterling bancorp, Inc.

Market value: $4.2 billion

Dividend yield: 1.4%

Analysts’ average recommendation: 1.5

Regional financial stock Sterling Bancorp (STL, $19.88) is having a hot year. Shares are up more than 20% so far in 2019, and analysts think there’s more outperformance to come.

With an average recommendation score of 1.5, the Street leans heavily toward “Strong Buy” and “Buy” calls. Sandler O’Neill analysts base their own “Buy” call partly on the stock’s “compelling valuation.” They also laud the company’s ability to keep a cap on costs: “Expense control has been excellent.”

The regional bank with locations primarily in the greater New York area is expected to deliver annual average earnings growth of 5% for the next five years. Sterling’s next quarterly update should come after the April 24 market close.

5. China Life Insurance (LFC)
China Life Insurance (LFC)

Market cap: $95.9 billion

YTD return: -29.8%

China Life Insurance is the second-largest insurer in the world’s second-largest economy. China Life enjoys firsthand access to one of the most coveted demographics in the world in the burgeoning Chinese middle class, and rising income isn’t the only bullish macroeconomic trend for LFC. Life expectancy in China increased from 70.4 years in 1996 to 76.3 years in 2016. As a life insurer, it’s always nice when you’re selling insurance to ever-healthier populations. LFC is a nice way to add geographic diversity to your portfolio: due to its investments in the rising Chinese stock market, LFC saw profits nearly triple in the first three quarters of 2019, yet it trades at just 16.6 times earnings.

6. Western Alliance Bancorporation
Western Alliance Bancorporation

MARKET VALUE: $4.5 billion



Shares in Western Alliance Bancorporation (WAL, $43.32) – a regional bank with branches in California, Arizona and Nevada – tumbled in March after the Federal Reserve indicated that it wouldn’t raise interest rates again in 2019. Low rates put pressure on banks’ net interest margins, or the difference between what a lender pays for deposits and charges for loans. Thus, WAL was hardly alone in reacting negatively.

Analysts as a group remain bullish on Western Alliance’s stock, however, which has rallied sharply in recent weeks. Indeed, WAL is up 11% since bottoming on March 22. Standard & Poor’s 500-stock index has gained 3% over the same time frame.

The regional bank is forecast to generate average annual earnings growth of 7.5% over the next five years, according to data from Refinitiv. Its quarterly results are expected to come after the April 22 closing bell.

7. Universal Insurance Holdings
Universal insurance holdings

Market cap: $578.6 million

YTD return: -40.3%

Universal Insurance Holdings seemed primed to outperform heading into 2020, making the list as one of the best financial stocks to buy based on its attractive fundamentals, sustainable-looking dividend and strong balance sheet. Unfortunately, the small-cap property insurance company has been punished – fairly or unfairly – more than most financial stocks.

Indeed, a precipitous drop in interest rates is bad news for the entire insurance industry, since insurers rely on not just underwriting expertise, but also interest income on their investments to generate profits. Despite the rough environment, UVE remained profitable and reported profitable underwriting numbers in the first quarter.

8. Huntington Bancshares
Huntington Bancshares

MARKET VALUE: $14 billion



Huntington Bancshares (HBAN, $13.30) – a regional bank based in Columbus, Ohio, with branches mainly concentrated in the Midwest – offers a generous dividend yield and high forecast dividend growth.

Concerns about stagnant interest rates and slower economic growth have some analysts leaning toward being more cautious on the stock. Their average recommendation of 2.39 sits between the “Buy” and “Hold” camps.

Analysts expect HBAN to generate average earnings growth of 8% a year for the next five years, according to a survey by Refinitiv. That should help fund a dividend that has doubled from 7 cents per share quarterly to 14 cents since late 2015.

9. Berkshire Hathaway
Berkshire Hathaway

Market cap: $410.7 billion

YTD return: -24.5%

Berkshire Hathaway, in some ways, defies being confined to one sector or another. It’s a holding company, really, run by the “Oracle of Omaha” himself, Warren Buffett. Still, Berkshire is more a financial than anything else: Berkshire became a powerhouse largely through insurance, taking in premiums and reinvesting them in undervalued securities.

That method has been enormously successful over the decades, with early Berkshire shareholders earning compounded annual returns around 20% since Buffett arrived about 50 years ago. Unfortunately, you can’t win them all, though, and Berkshire’s investments, including large bets on the airline industry, proved poor wagers as the downturn decimated travel.

The value of Berkshire’s equity portfolio fell more than $50 billion in the first quarter, though it will get through the crisis just fine: Berkshire sold its airline stocks and has $137 billion in cash on hand.

10. KeyCorp

MARKET VALUE: $16.4 billion



With more than 1,100 branches across 15 states and about $130 billion in assets, Cleveland-based KeyCorp (KEY, $16.39) is one of the largest regional banks in the nation. A hefty dividend yield north of 4% and solid growth prospects have analysts convinced that solid returns still lie ahead.

Zacks Equity Research notes that KeyCorp has been driving growth through acquisitions. Since 2016, the bank has bought out First Niagara Financial Group, HelloWallet and Cain Brothers & Company. Most recently, it closed on its acquisition of Laurel Road Bank’s digital lending business in early April.

Analysts forecast the bank to generate average annual earnings growth of 6.7% for the next five years. Add in the dividend yield of more than 4% and KEY gets an average analyst recommendation of “Buy.”

11. JPMorgan Chase & Co.
JPMorgan Chase & Co.

As the largest bank in the U.S., this isn’t JPMorgan’s first rodeo as one of U.S. News’ 10 best bank stocks to buy, either. JPM made the list for 2019, and, boy, did it earn its spot: Including dividends, shares of the mega-bank jumped 47% last year.

Alongside Buffett, JPMorgan CEO Jamie Dimon is another living legend on Wall Street, the only remaining big bank CEO who navigated his company through the financial crisis. Set to stay on as CEO through 2023, Dimon has another macroeconomic crisis to handle.

JPM’s outlook has certainly been damaged by 2020, as the bank set aside an additional $6.8 billion in Q1 as it prepared for growing defaults from borrowers. That said, for better or worse, JPMorgan is too big to fail and will doubtlessly power through the crisis.

12. SVB Financial Group
SVB Financial Group

MARKET VALUE: $12.4 billion



SVB Financial Group (SIVB, $237.27) is a different kind of animal.

SVB, which stands for Silicon Valley Bank, is a go-to bank for tech-sector startups. In addition to commercial banking, the firm offers services ranging from venture capital and private equity to private banking and wealth management.

Sandler O’Neill analysts have a “Buy” rating on this bank stock partly because of its “unique franchise.” The analysts also like SIVB’s “above-average growth and superior deposit base.”

SIVB is up 25% for the year-to-date, which beats the S&P 500 by about 10 percentage points. Despite the run-up in price, analysts have kept their bullish stance. Their average recommendation of 1.67 sits easily on the “Buy” side of the scale.

13. NMI Holdings (NMIH)
NMI Holdings

Market cap: $869.9 million

YTD return: -59.9%

Easily the worst-hit pick on this year’s list of top financial stocks, NMI Holdings, the parent of National Mortgage Insurance Corp., has, in retrospect, proven a very poor choice for 2020. Entering the year, shares had quite a lot going for them: incredible momentum, a price-to-earnings ratio of 14 and bullish expectations for both revenue and earnings to surge by 24% on the year.

But with 36 million newly unemployed Americans in the span of a few months, selling mortgage insurance that pays out if low-down-payment borrowers default is simply a bad business. NMIH’s risk profile now seems too high for most investors as economic uncertainty continues to abound.

14. SunTrust

MARKET VALUE: $27.3 billion



SunTrust (STI, $61.56) still has its fans in the analyst community, but stock evaluators have gone into wait-and-see mode pending the finalization of a merger with BB&T (BBT). The $28 billion deal was announced in February and is expected to close before the end of this year.

UBS, for example, downgraded STI to “Neutral” (equivalent of “Hold”) in early March. “Our prior thesis no longer holds; investment case tied to whether BB&T merger creates value,” analysts wrote in a note to clients.

The majority of Wall Street’s pros are on the fence. Of the 27 analysts tracked  by S&P Global Market Intelligence, 17 say SunTrust is a “Hold.” Eight call it a “Strong Buy,” while two have it at “Buy.”

15. Goldman Sachs Group
Goldman Sachs Group

Market cap: $59.1 billion

YTD return: -24.1%

Another repeat member of the best bank stocks to buy list is Goldman Sachs, which certainly earned its position in 2019 when shares of the investment bank rose 36%. The past year was interesting since it was the first full year with new CEO David Solomon at the helm; former CEO Lloyd Blankfein had been running things since 2006.

Although GS shares will almost certainly deliver a less impressive return this year, the famed investment bank is far better suited than the average financial stock to weather the turbulent economic environment; investment banking results actually jumped 25% in the first quarter as equity and credit underwriting revenue soared.

Derivatives revenue related to volatility also rose, although earnings per share took a 46% hit as credit loss provisions soared. Goldman’s price-book ratio of 0.72 is far, far lower than usual; the stock’s five-year average P/B is 1.05.

16. BB&T

MARKET VALUE: $36.8 billion



With nearly 1,900 branches and almost $220 billion in assets, BB&T (BBT, $48.11) was already one of the nation’s largest regional banks. Once it completes its merger with SunTrust, the combined firm will become the nation’s sixth-biggest bank by assets.

However, analysts on average are merely upbeat, but not uber-enthused, about BB&T’s prospects.

Sandler O’Neill, for instance, applauds the SunTrust merger. But it also thinks investors should wait for a better entry point on BBT stock. The analysis outfit has a “Hold” rating on the shares, which is not an uncommon view. Fifteen of the 24 analysts tracked by S&P Global Market Intelligence fall in the middle. Only eight call BBT a “Strong Buy,” and one other analyst says “Buy.”

17. Square (SQ)
Square inc

Market cap: $35.5 billion

YTD return: +25%

The next financial name to make the cut for 2020 is Square, the digital payments company founded and run by Twitter (TWTR) CEO Jack Dorsey. The only company on this list that was not profitable entering the year, SQ is expected to start consistently breaking into the black in 2020.

Ironically, despite its lack of profitability, SQ has been the only big winner year to date on the list of the best bank stocks, as the point-of-sale and contactless payments company can expect increased adoption in a post-pandemic world.

Square also owns Cash App, which competes with Robinhood, allowing investors to buy fractional shares, buy and sell stocks for free and easily trade cryptocurrencies like bitcoin. It also functions as a Venmo competitor, allowing users to easily send money remotely to one another.

18. Bank of America
Bank of America

MARKET VALUE: $280.2 billion



Shares in Bank of America (BAC, $29.07), the nation’s second largest bank by assets, are up a market-beating 18% so far in 2019.

With an average recommendation of 2.10, analysts are most bullish on the mega-cap financial stock, but there are a significant number of “Hold” calls. Of the 30 analysts surveyed by S&P Global Market Intelligence, 10 say BAC is a “Strong Buy” and seven have it at “Buy.” The remaining 13 analysts call it a “Hold.” That includes HSBC’s Alevizos Alevizakos, who started BofA at “Hold” on concerns such as margin contraction and declining loan growth.

Still, analysts forecast BAC to generate average annual earnings growth of 21% for the next five years. Their average target price of $33.17 gives the stock an implied upside of 14% in the next 12 months or so.

19. Citigroup

MARKET VALUE: $153.4 billion



Analysts as a group aren’t as jubilant about large bank stocks as they are about the sector’s midsize and smaller companies. But Citigroup (C, $65.52), the nation’s fourth largest bank by assets, has a cleanly bullish camp. With an average recommendation of 1.79, analysts are split on whether the massive money center bank is a “Strong Buy” or a “Buy.”

As well they should be. With an average price target of $77.64, according to Refinitiv, shares in Citigroup have implied upside of more than 18% in the next 12 months or so.

UBS analysts, who rate Citigroup stock at “Buy,” say “a low bar could set (the) stage for near-term outperformance.” Shares in the bank are up 26% year-to-date already.

Wall Street expects average annual earnings growth of nearly 17% over the next five years.

20. AT&T

Sector: Telecommunications

Market value: $234.5 billion

Dividend yield: 6.2%

AT&T (T, $32.26) is featured on Simply Safe Dividends’ best high-dividend stocks list and has paid a higher dividend for 34 consecutive years. But the company has undergone some rather dramatic business changes in recent years. From acquiring DirecTV to merging with Time Warner, AT&T has morphed into a true media conglomerate with 170 million direct-to-consumer relationships across mobile, internet and TV.

AT&T hopes to bundle together its unique assets to increase the value of its customer relationships, reduce churn and develop a sizable advertising business. It will take years to assess the success of management’s chess moves, which have significantly increased the firm’s debt load, but the dividend appears to remain on reasonably solid ground.

In fact, management expects the company’s free cash flow payout ratio to sit near 60% in 2018, including all Time Warner integration costs. AT&T also believes it will return to historical leverage levels by year-end 2022.

While AT&T’s pace of dividend growth will remain very moderate during this period, the stock’s high yield provides income investors with some nice compensation as the business digests its recent deals and works on evolving for the future.

Why are Banking Stocks going down

Big banks are navigating choppy waters as markets are roiled by the coronavirus pandemic and the Federal Reserve makes rapid moves to keep credit flowing .

The S&P 500 has dropped 4.6% even after the Federal Reserve unveiled new stimulus measures–including buying corporate bonds–before the market open. But banks have fallen even farther with the KBW Bank Index (ticker: BKX), tumbling 7.6%. Financial institutions, which were the cause of the financial crisis of 2008, are now better capitalized than they were more than a decade ago, but even so, they’re under stress in the current climate.

Interest rates are near-zero again, crunching the bank’s net interest income. The banks also have to contend with the flood of clients tapping their credit lines, raising the possibility of loan losses as oil prices trade in the low 20s. To date, shares of JPMorgan Chase (JPM) shares are down 41.6% this year, while Goldman Sachs (GS) and Bank of America (BAC) have dropped 40.5% and 46%, respectively.

With the Fed now stepping in with lending facilities to purchase corporate bonds as well as securities backed by consumer debt, the banks may get a glimmer of hope–albeit a faint one–when it comes to how the banks recognize their loan loss provisions.

Starting this year, banks had to adopt a new accounting standard, Current Expected Credit Losses, or CECL, which forces them project loan losses at the time of origination. Unsurprisingly, the banks pushed back against the change prior to the coronavirus pandemic and some continue to do so, citing the current climate. Even analysts acknowledge the poor timing with Mike Mayo of Wells Fargo Securities calling it the “worst possible time for a change in bank loan loss accounting,” in a note Sunday.

Still, Mayo sees a “unique buying opportunity” for banks over the next two years thanks to the government’s measures to contain the crisis. While Congress is still debating fiscal stimulus measures, it appears certain that affected industries will get some sort of reprieve–even as the details are being hammered out. But while banks wait for Congress, the Fed’s aggressive moves–making purchases of corporate bonds–can be factored into the bank’s loan loss provisions.

“The government seems to be throwing the kitchen sink to bridge the gap between the pre- and post-virus economies,” Mayo wrote. “CECL allows banks to consider this forward expectation when setting loan losses in aggregate or with regard to loan restructurings and forbearance.”

The 5 Best Stocks to Buy for Beginners

Today’s market may be a great entry point! Yes, the novel coronavirus may have battered down stock prices. But that’s exactly the kind of environment ripe with opportunities. So, what should you keep an eye out for when you start looking for the best stocks to buy?

Think large, stable companies. “Blue Chips,” if you will. But don’t think you’re limited to “old school” industries when I use that term. Even high-quality growth stocks such as major tech companies fit this criteria. In today’s market, “flight to quality” is the key. And these are exactly the kinds of stocks beginner investors should consider when building their first portfolio.

Taking a look at major names, these five stand out as some of the best stocks for beginners to buy. Across multiple industries, these offer stable earnings, solid dividend yields and high potential for their shares to go higher long term:

  • AT&T (NYSE:T)
  • Microsoft (NASDAQ:MSFT)
  • Proctor and Gamble (NYSE:PG)
  • Visa (NYSE:V)

How to Buy Your First Stock

1. Find the best online broker for you

The dynamics of choosing the best online stock brokers have changed a bit. Most major brokers, such as Charles SchwabTD Ameritrade, and others, have eliminated trading commissions, which has largely taken cost out of the equation.

That leaves two main considerations when comparing brokers: whether a broker meets your needs and the ease of use of their trading platform. 

  • Does a broker offer everything you need? For example, some brokers offer excellent educational resources for new investors, access to stock research, and other useful tools. Some online brokers offer in-person branches, so if you decide you want some face-to-face guidance it could be just a short drive away. Other features that might matter to you include the ability to trade on foreign stock markets and the ability to buy fractional shares of stock, and not all brokers offer these.
  • Is their platform user-friendly and easy to navigate? If you plan on trading from your phone or other mobile device, you need to make sure that the broker’s mobile platform is user-friendly enough for you. Fortunately, many popular brokers allow you to test-drive their trading platforms with play money before you sign up. Try a few and see which you like the best.
2. Open and fund your brokerage account

Once you’ve chosen a brokerage, the next step in the process is to fill out the new account application. It’s a good idea to have your driver’s license and Social Security number handy, as well as your bank account information if you plan to fund your new account from your checking or savings account. This is typically a quick and easy process.

When filling out the account application, two decisions you might have to make are:

  • Do you want margin privileges? This essentially means that you’ll have the ability to borrow money to buy stocks. While investing on margin is typically not a good idea, having margin privileges can be a benefit in some cases — for example, you generally cannot use deposited funds until they clear unless you have a margin account.
  • Do you want options trading privileges? If you’re a newer investor, it’s generally a good idea to stay away from options until you really know what you’re doing. There are usually several levels of options privileges to choose from, and you can always apply to change yours later on.

When it comes to funding your account, you have a few choices. The most common options are an electronic funds transfer (EFT) from your checking or savings account, mailing the brokerage a check, or wiring the money.

3. Decide which stocks you want to buy

Without getting too deep into methods of analyzing and selecting individual stocks to buy, the next step in the process is to determine the stock(s) you plan to buy in your new account.

A couple things to keep in mind:

  • Focus on the long term. Buy stocks that you want to own for years, not that you think will do well over the next few weeks or months.
  • Diversification is a smart idea. Don’t put all of your money into just one or two stocks. Even if you’re starting the account with a relatively small amount of money, commission-free trading has made it practical to buy just a few shares of several different stocks.
4. Decide how many shares to buy

To determine how many shares you should buy, first determine how much money you want to invest in each stock. Then, divide this amount by the stock’s current share price. You can find this by either entering the stock’s ticker symbol or by running a search for the company on your brokerage platform.

If your brokerage allows you to purchase fractional shares, you can simply use the result of this calculation. Many don’t allow this, so you’ll have to round down to the nearest whole number to determine how many shares you can buy.

For example, let’s imagine that I want to invest $1,000 in Microsoft (NASDAQ: MSFT). Then, let’s say I check Microsoft’s share price and find it’s trading for $149.50 per share. Dividing $1,000 by this share price gives a result of about 6.7. Assuming that my brokerage doesn’t allow fractional shares to be bought or sold, this means that I can buy six full shares of Microsoft stock.

5. Decide on your order type

You’ll have the choice between several different order types, and “market” orders are typically the best choice for long-term investors. This tells the brokerage that you want to buy the stock immediately, and at the best available price.

The other commonly used order type is known as a “limit” order. This tells the broker the maximum price you’re willing to pay — for example, if a stock you want to buy is trading for $20.50 per share but you want to buy it for under $20, you can enter a limit order that instructs your broker to only buy if the price reaches the desired level. 

Once you fill out your trade ticket and hit the “place order” button, it should just take a matter of seconds before your broker executes the order and shares show up in your account.

6. Enter your stock orders

The final step to buy shares of stock is to place the order with your broker. Here, you’ll enter the stock symbol you want, whether you want to buy or sell shares, and how many shares you want.

7. Sit back and relax

Once you’ve bought your first stocks, you can sit back and relax, and let the long-term compounding power of the stock market do the work. If you want your dividends to be automatically reinvested into more shares, you can typically enroll in your broker’s dividend reinvestment plan (DRIP) with the touch of a button.

As a final thought, while it can be tempting to check your stocks every day (especially at first), it’s important to keep a long-term mindset. Certainly keep up with the latest news out of your companies by reading quarterly reports and subscribing to news alerts. However, if your stocks go down a bit, don’t panic and sell. And if your stocks go up by a few dollars, resist the urge to cash out. The best way to build wealth over time is to buy shares of great companies and to hang onto them for as long as they remain great companies.

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