My teenage kid asked me for a recommendation for her first stock and my immediate thought was something for long term with stable and growing dividends. In a different world I would have gone with GE but it’s a different world we are now. JNJ, WMT and PG still comes to mind along with PEP or KO but love to get some recommendations. Technology stocks excluded
Tom Elio: Disney. Dis. Or even better. Visa V.
Randhir Agarwal: Visa is really good and so is Disney although I haven’t looked at Disney closely yet but I will now
AJ Singh: Starbucks
Randhir Agarwal: I wasn’t aware starbucks paid dividends and i am unsure how committed starbucks is to dividends in their overall growth strategy
Bernie Klunder: AWR
Eric Finck: DIS undervalued right now….check out Jason Fieber pick of the week…..Daily Trade Alert
Jeff York: I agree.
Otilia Cozma: JNJ , V, HD, COST . Right now looks like banks are the winners ..
Parker Richardson: T
Russell Giere: MSFT
Chris Banton: WM. The moat. The moat.
Sue Weed: Ask her about products she uses, stores she shops at and have her help you check them out Warren Buffet has said invest in things you understand and are familiar with how they work. I am sorry I didn’t pay closer attention to my teenage niece when she was 13 in 2012 and talked enthusiastically about how cool a shop called “Five Below” was to shop at ($25/sh @ that time) today it is worth over $67. How cool would that be even without the dividends.
Matt Aldridge: You can start with my dinner, frito pie (HRL chili, KHC cheese, PEP frito chips and DPS Dr Pepper). Ingredients purchased at WMT with my BAC V debit card. Most of the long term winners hide in plain sight.
John Tierney: VFC for sure
Rhondel Garner: What about Walgreens.They have been paying dividends for about 82 years and have raised it the last 42 years.
Sharon Green: Disney & Visa.
Parker Richardson: TSN
Austin Allgood: Smart kid
Austin Allgood: I would also tell her to research and make a decision and see how it turns out… teach her to think on her own and make her own decisions…. very smart though asking for advise
Randhir Agarwal: Yes she plans on doing some research during holiday break. I do want to set her with DRIP account so she understands how to look at overall cost and keep them minimum
Greg Williamson: I would go with Disney because it has a bright future and most kids are familiar with it.
Jeff York: I bought my kids 10 shares each.
Randhir Agarwal: Jeff York awesome
Tyler Kline: aapl into earnings
Tyler Kline: utilities for the ensuing correction
Dennis Fuller: Look at what Sue Weed said above.. Get your daughter involved ,, Don’t ask strangers ,, ask her what is interesting to her, what does she use, make it personal for her and she will keep investing
Randhir Agarwal: Well I do want to steer her in right direction. She may go with teenage clothes line ? and i have seen how fickle this can be. She’s going to use her own money so I want to guide her with some of the recommendations provided here to make her think hard before putting her money into something
Dennis Fuller: If she likes her Ipad point out apple, if she uses AT&T cell phones ,, then point out T.. If she likes coach purses , North face (VFC) Get her to make a list and then go it with her with the pros and cons of each and how much $$ the dividend will produce for her
Nikos Kakolyris: Unilever
Parker Richardson: Philip Morris Intl
Jeff York: Or MO.
Nikos Kakolyris: Hi I see the payout ratio on PM is ~ 93%.. is this sustainable? Does this have to do with company policy to give away all their earnings or have they come to a point that by raising dividends will exceed 100%
Parker Richardson: Nikos Kakolyris Keen observation. Full disclosure, I do not have a position in PM although it is on my watchlist. The payout ratio is worrisome to me as well, but has been above 100% in past and subsequently fallen. While not sustainable this indic…See more
Randhir Agarwal: I own PM and have for a while. The industry does not require a lot of investment to grow. Smoking is dwindling around the globe although developing nations still continue to provide small growth. I think future growth will come from either technology and mergers and as such these companies don’t need a lot of capital investment and hence they return most of it as dividends
Jeff York: Oh goodness no. Sin stocks like smoking may not have explosive growth but they’re here to stay. When recessions hit, people don’t give up smoking. Its customers are generally lifetime. they’re wonderful for shareholders. I’m an owner, not a customer
Randhir Agarwal: But no PM or MO in consideration for a teenager ? even if it’s just an investment
John Tierney: MO is awesome
David Scott: Have them invest in a a company they like or use. Disney, Nike etc…
Tom Elio: Go with Visa or MasterCard.
Ken Faulkenberry: Something she can understand and/or have interest in will help her enjoy and learn. Maybe AAPL, DIS, or T.
Brad Betenia: V, MA, TXN, HD, JNJ, MSFT would be my picks to start a portfolio.
Randhir Agarwal: Thank you everyone for some real good pointers. I have enough to sit with her to help her think about her first real investment
Taseer Raza: Maybe something your kid would understand…like Disney.
Deuel Stephens: Dividend stock in her favorite store
Gar Fai Pang: What a smart teenage girl! Why not own some real estate e.g. SKT. Low valuation. 5.45% dividend yield. Dividend raise for 24 years in a row.
Wade Jagmin: AAPL is here to stay, its a worldwide tech juggernaut
Jeff York: It is indeed.
Ryan Crawford: Index etf. Like VV or VT or VTI. Why own 1 company when you can own them all!
Dawud Joseph: B
Botao Jiang: AT&T
Tom Elio: Have you thought of the Rails. There are 4 rails in America. UNP. KSU. CSX. NSC. The economy is good the rails do good. The economy is bad the rails do good. ALL industries use the rails to transport their goods. I own 2 rails stocks. UNP AND CN.