One of the most frequent questions we get at is “which stocks should I invest in?” While we are constantly looking at upcoming IPOs and trending stocks, you really need to be invested in stocks that have stood the test of time.

Which Stocks Should I Invest In

Alexander Green, Chief Investment Expert for The Oxford Club had this to say about the recent market downturn:

The awful investor sells in a panic – and always finds reasons to justify it. The decent investor at least stands pat – and reinvests his or her dividends, if possible. The best investors? They are moving money out of cash or bonds and into beaten-down, high-quality stocks. These not only yield more than fixed income investments. They will almost certainly deliver superior long-term returns…

But what are high-quality stocks? For the purpose of simplicity, we’ve broken them down into three (sometimes overlapping) categories. Blue chip stocks, dividend stocks and consumer staples stocks.

Which Stocks Should I Invest In: 3 Types

Blue Chip Stocks

Blue chip stocks are highly valued, financially sound entities that are nationally respected. Especially on Wall Street. A blue chip company sells a variety of products and services of sound quality. They have a track record of continued profitably during tough economic times and in some of the most turbulent conditions. The best blue chip stocks have a long tradition of stability and steady growth performance.

Read more about blue chip stocks here

Dividend Stocks

Dividend investing is great way to boost your income. The strategy is a passive approach that’s easy to start. When you buy great dividend companies, you add a steady stream of income to your portfolio. Dividend stocks also offer lower taxes on qualified dividends, diversification and much more.

Dividend reinvestment is a great way to supercharge your stock returns. It’s an automated process, and your returns compound the longer you wait.

Read more about dividend stocks here

Consumer Staples Stocks

Consumer staples companies make and sell the basics. For example… shampoo, toothpaste, toilet paper, soft drinks, cigarettes and mouthwash.

No matter what happens in the market, folks buy the basics. If commodity prices jump, the companies in question simply raise their prices… and folks keep buying. It’s a simple and safe business model.

Read more about consumer staples stocks here

Which Stocks Should I Invest In? – Summarized

Looking to quality stocks like blue chips, dividends or consumer staples will not only protect you from market volatility, but will also give you peace of mind. These are stocks that have had ups and downs, but have always bounced back. In many cases this may be due to extraordinary leadership. Other times, it’s the nature of the products themselves. Whatever the case may be, these three types of stocks should help you answer the question, “which stocks should I invest in?” To learn how to become a better investor, Sign up for our Free InvestmentU E-letter now.