New Investors: 3 Rock-Solid Stocks to Build Your Portfolio Around

If you're a new investor who's just getting started with investing, it can seem overwhelming trying to determine which stocks to buy. You may be tempted to go with what's hot right now and focus on the latest trends, but that can be risky. Meanwhile, being too conservative and avoiding risk entirely could result in limited returns and may not seem all that worthwhile.

Three stocks that I think can be ideal ones to build up a portfolio around are Visa (NYSE: V), Home Depot (NYSE: HD), and Abbott Laboratories (NYSE: ABT). With this mix of stocks, you'll get three reasonably valued investments that have strong fundamentals and that also pay dividends. Here's a closer look at each one of them.

Visa

Credit card giant Visa is a no-brainer for long-term investors given its important role in the economy. Its credit cards are accepted worldwide and are used not only by people who may be short of cash, but also by those who want to collect points and benefit from rewards, as well as those who simply prefer not to use cash.

The business is robust and serves a wide range of customers with varying needs. This is also a highly profitable business, with Visa reporting $22 billion in profit over the trailing 12 months, on revenue totaling $43 billion. That translates into an impressive profit margin of 51%.

Visa's business isn't going anywhere, and with strong financials, it can be an excellent investment to build your portfolio around. It offers a modest dividend that yields 0.8%, which can pad your returns. It trades at a price-to-earnings (P/E) multiple of just under 28, which isn't terribly cheap but is arguably fair given the growth it continues to generate.

Home Depot

Another solid business that provides consumers with necessary products and services is Home Depot, an iconic home improvement retailer. This is a store that many people frequent when they're taking on renovations and other projects around the house. It's helpful to not only get the tools you need to do the job, but also to get advice and suggestions on how to go about doing so.

While the retailer has been facing challenges in recent years due to a slowdown in the housing market, its future remains bright given the strong position it has in retail. It also generates some strong margins, with its profits totaling $14 billion over the past four quarters on revenue of $167 billion, which means its profit margin is about 8%. Although that's nowhere near the profitability that Visa generates, it's a solid rate nonetheless.

At 3%, you're also getting a terrific dividend yield from Home Depot stock that's close to three times the S&P 500 average of just over 1%. Home Depot has also been increasing its dividend over the years, giving investors an incentive to simply buy and hold. The retail stock currently trades at 22 times earnings.

Abbott Laboratories

Rounding out this list is a top healthcare company, Abbott Laboratories. The business generates revenue from multiple segments, including diagnostics, medical devices, nutrition, and established pharmaceuticals, with each one on its own bringing in billions of revenue each quarter. That diversification can help provide you with a solid, all-around healthcare stock.

In the trailing 12 months, Abbott has generated $45 billion in sales with profits totaling about $6.3 billion, which means its net margin is approximately 14%. With many ways to grow its business, it can be a valuable stock to hold given its varying growth opportunities and potential. The company recently acquired Exact Sciences, which develops products that can help with cancer screening and testing.

One of the main reasons investors buy shares of Abbott Laboratories is for its dividend, which currently yields 2.8%. Abbott is also a Dividend King, having raised its payout consistently for more than 50 consecutive years. It's a great buy-and-hold investment that you can simply hang on to and forget about. Its P/E ratio currently sits at 25, which is in line with the S&P 500 average.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories, Home Depot, and Visa. The Motley Fool has a disclosure policy.