New Investors: 3 Stocks to Build Your Portfolio Around in 2026

Core Investment Insights - Investing in blue chip stocks is recommended for building a solid portfolio that can provide stability and long-term growth [1] - Novartis, Home Depot, and American Express are highlighted as strong investment options across different sectors, offering diversification and reasonable pricing [2] Novartis - Novartis has seen a stock price increase of 46% over the past five years and offers a dividend yield of 2.9%, significantly higher than the S&P 500 average of 1.1% [4] - The company is actively pursuing growth through mergers and acquisitions, with a forecasted compounded annual growth rate of 5% to 6% through 2030, supported by a pipeline of over 30 promising medicines [5] - The stock is trading at a modest price-to-earnings ratio of 19, compared to the S&P 500 average of 26, making it an attractive option for value, growth, and dividends [6] Home Depot - Home Depot is a leading name in the home improvement sector, benefiting from new home construction and maintenance needs of home buyers [7] - The company anticipates a sales growth of 3% for the current fiscal year, despite a general consumer trend of reducing discretionary spending, indicating potential for higher growth under favorable economic conditions [9]