Your debts are under control, your emergency fund is fully funded, and you are maxing out your retirement savings. And, lucky you, you still have $1,000 left over to invest in stocks. There are options.
You could gain instant exposure to shares of hundreds of companies by plowing the money into a low-cost fund that tracks the Standard & Poor’s 500-stock index fund such as the SPDR S&P 500 ETF (symbol SPY). Simple and cheap. Or, you could buy a single share of a high-priced stock like Amazon.com (AMZN) and you might not even have enough left over to cover your $99 Amazon Prime membership fee. But it’s risky putting all of your eggs in one basket. Another approach is to spread the money over several promising low-priced stocks.
SEE ALSO: 25 Great Dividend Stocks Raising Dividends for 25 Years
The one wrinkle to buying shares of multiple stocks is trading commissions. Even at just $4.95 per online trade at Fidelity or Schwab, investing in 10 different stocks means your $1,000 investment is already down 5%. A workaround: Open a free Robinhood account and make no-commission trades on your smartphone using the brokerage’s app. Here are nine good stocks under $20 to consider for your portfolio.
Data is as of May 2, 2017, unless otherwise indicated. Click on ticker-symbol links for current share prices and more.