Thursday, November 11, 2010

5 solid stocks your kids will like

These child-friendly shares might look pricey, but they have a reputation for growth — and room for more.

Walt Disney. Mickey is a perennial kid-favorite. And this blue chip stock pays an annual dividend of 35 cents a share and is up 40% over the past five years. A history of conservative stock growth and the company’s acquisition of Marvel Entertainment last year may add to its bottom line.

Hasbro. Its live action films like "Transformers," and its games, like Battleship, will entice your kids. Investors are on board too: Hasbro’s stock is up 140% since 2005. Its quarterly dividend is 25 cents a share, up 25% from last year. Given its product innovation and management strength, Hasbro’s stock still has room for growth.

Apple. Even the least tech-savvy kid will get excited at the prospect of owning a piece of Apple. And despite its high price of $314 a share – up 410% over the past five years – analysts expect the stock to continue growing on the success of the iPad and iPhone.

Nike. Kids clamor for the the LeBron James shoe, and many of their favorite athletes are featured in Nike commercials. The company's quarterly dividend is 27 cent per share; Nike has proven to be a steady earner – the stock is up 88% since 2005. Nike weathered the downturn because of its name recognition and the popularity of its worldwide retail stores.

HJ Heinz. The ketchup company’s stock is up 58% from its 2009 low, largely a market downturn casualty. Long-term, the stock is likely to continue growing given its main product is a fixture on just about every child’s dinner plate (and at lunch and breakfast, in some cases). Currently trading at $49, the company pays a quarterly dividend of 45 cents per share for common stock.


Disclosure: I own Apple and Nike

No comments:

Post a Comment