As a more conservative Top Pick for investors looking for a nice blend of growth and income, I am going with a "household name" – Charles Schwab (SCHW), suggests Nate Pile, editor of Little River Investment Guide.
Thanks to various trends that have been underway in the financial industry for a while (along with a management team that has been astute enough to position the company to take advantage of them), Schwab's stock has been climbing in exactly the sort of slow-but-steady manner I most like to see.
To be sure, there are other smaller brokerage firms with trading platforms that may be more attractive to certain niche groups of traders, but, in my humble opinion, Schwab's line-up of products and services is one strongest and broadest in the industry.
And given the company's size and leadership position in the sector, I expect its ability to attract additional clients (and their capital) to only continue growing in the years ahead.
As someone who got his start in the stock market by reading a number of Peter Lynch's books on investing, my optimism for the stock is further enhanced by the fact that I a satisfied Schwab customer, and that I have also had many of my subscribers over the years tell me that they, too, are quite pleased with their experiences at Schwab.
While there is always a chance that something will change behind the scenes at the company to ruin the peace of mind that comes from these observations, it is always easiest (and often smartest) to invest in situations — as Peter Lynch suggests — that one has had positive first-hand experiences with.
Though its dividend payout is smaller than many other stocks I like — currently "just" $0.72 per year — I believe the stock has a great risk-reward ratio at current prices and provides some nice potential for growth in the years ahead. SCHW is a buy under $90.