Millennial investors -- that is, those who were born between 1980 and 2000 and have been investing in just the past 15 years -- have only known extreme unpredictability. Many of them grew up in the 1990s, during one of the greatest economic and market expansions in U.S. history. They saw the dot-com boom and then bust, the ravages of 9/11 and the global war on terror. They lived through the Great Recession, the flash crash and now are seeing markets hit new highs and a roaring economy.
That's a lot of volatility to take in in a short period of time. You could forgive millennials for being skittish investors.
But, like every generation before it, millennials need to be in the markets. Investing in equities has long been a road to prosperity for Americans and millennials will be no different. But which stocks should millennials own?
As a millennial myself, I can tell you that we have been trained through the ups and downs of the market and the constant news media coverage around it to chase the upside and ride the downside. We would have been better off doing the exact opposite. So how do you invest as a millennial?
First, you should start off with a solid set of stocks that you can depend on for the long haul, a value investing portfolio that, if prudently managed, should earn you good returns for the length of your life.
Here are 10 stocks that every millennial should own.
Exxon Mobil (XOM)
The company has built itself a reputation. Exxon currently delivers a 3% dividend yield, undergoes low selling pressure, and doesn't panic when oil volatility strikes. Another attractive feature is its price-to-earnings ratio which is 11.0, which is attractive. Given the current global oil situation, the stock has been affected and is down 5% over the quarter. Yet, the oil giant is predicting earnings-per-share growth to be a little over 4% in 2015, despite its already big size. As the cost of oil starts to trend back upward, so will Exxon Mobil.