Investing in stocks is easy, just create an account with a reliable brokerage for stocks and choose a stock you want to invest in. But investing in the right stocks is hard. So, what are the best investments in stocks for August 2024?

1. Blue-chip stocks

What are blue-chip stocks?

Blue-chip stocks are shares of well-established companies with a history of stable earnings, strong financials, and a reputable standing in their respective industries. These companies are typically among those biggest market cap companies like Apple, Amazon, Microsoft, and Nvidia.

What type of investors are blue-chip stocks for?

Blue-chip stocks are considered to be relatively stable and reliable investments, often regarded as safe havens during turbulent market conditions, so they might be an attractive option for investors who seek long-term gains.

2. Penny stocks

What are penny stocks?

Penny stocks refer to shares of small-cap companies that trade at a low price, in the UK typically below £1 per share. The best UK penny stocks can be found on various stock exchanges, including the London Stock Exchange’s Alternative Investment Market (AIM) and the PLUS Markets.

What type of investors are penny stocks for?

Penny stocks are generally considered suitable for more speculative and risk-tolerant investors due to their inherently volatile nature and higher risk profile.

3. Dividend stocks

What are dividend stocks?

Dividend stocks are shares of companies that distribute a portion of their profits on a regular basis to shareholders in the form of dividends.

What type of investors are dividend stocks for?

Investors seeking regular income streams from their investments often gravitate towards dividend stocks. Dividend payments can provide a reliable source of passive income, especially for retirees or those looking to supplement their earnings.

4. Stock funds

What are stock funds?

Stock funds, also known as equity funds, are investment funds that pool money from multiple investors to invest in a diversified portfolio of stocks.

What type of investors are stock funds for?

Stock funds are managed by professional fund managers who make decisions on behalf of the investors to buy and sell stocks, so they can be suitable for individuals who do not have the time, expertise, or resources to actively analyze individual stocks or manage their investments.