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15 Stocks to Consider for Your Kids' Portfolios

By Selena Maranjian - May 2, 2022 at 7:00AM
Two children are holding cash and looking amazed and happy.

15 Stocks to Consider for Your Kids' Portfolios

Point your children toward financial security

There are few gifts you can give your children as valuable as guiding them toward being able to manage and grow their money well. Let them learn from your example -- as you shop, pay bills, and discuss your financial challenges and achievements. Let them see you investing in the stock market, too, and let them participate as you follow and discuss companies and invest in some of them.

Here are 15 companies that many kids will enjoy learning about and following, and they might be considered for berths in kids' own stock portfolios, too.

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Mickey and Minnie Mouse greeting visitors to Disneyland.

1. Walt Disney

Kids are most likely to be interested in stock investing if they're interested in the stocks. So focus on companies they're familiar with and like. Walt Disney (NYSE: DIS) is obviously a great pick for younger kids, but even older kids might appreciate it for its operations other than those related to Mickey Mouse -- such as Pixar movies, the Marvel universe, ESPN, and National Geographic.

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Monopoly game board.

2. Hasbro

Hasbro (NASDAQ: HAS) is another solid choice, and it, too, may appeal to older kids, as it's home to not only Play-Doh, My Little Pony, Nerf, and Power Rangers, but also Monopoly, Magic: The Gathering, and Dungeons & Dragons. With a market value recently near $12 billion, Hasbro is also a dividend-paying stock, recently yielding 3.34%. Hasbro has a new CEO and is looking to expand in digital gaming.

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Barbie doll in pink toy car

3. Mattel

Like Hasbro, Mattel (NASDAQ: MAT) is another titan in the toys and games arena. (It's a smaller company, recently valued near $8 billion, and it offers no dividend.) Mattel has lots of valuable properties, such as Barbie, Hot Wheels, Fisher-Price, American Girl, Thomas & Friends, Uno, Masters of the Universe, Monster High, and Mega. It's active in not only toys and games but also music and live events.

ALSO READ: Should You Buy Mattel After Disney Toy Deal?

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A white Nike sneaker.

4. Nike

With the world's 13th most valuable brand (estimated at $39 billion by the folks at Forbes), Nike (NYSE: NKE) needs little introduction. It's perhaps most known for its athletic footwear, but it has also become a major player in athletic apparel. Along with its flagship namesake brand, it's also home to Converse and Jordan. There's a good chance that your young ones favor at least one of these brands.

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A Netflix sign outdoors in a landscaped area.

5. Netflix

Netflix (NASDAQ: NFLX) has been a phenomenal stock performer in recent years, averaging annual gains of 37% over the past decade, versus a still respectable 14.5% for the S&P 500. It's a powerhouse in video streaming, obviously, but it's also making inroads into gaming. Netflix boasts around 222 million paid memberships globally, in more than 190 countries.

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Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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Two children playing with new iPhones in an Apple store

6. Apple

Apple (NASDAQ: AAPL) also has an incredible track record as a stock -- with average annual gains of 25% over the past decade, versus 14.5% for the S&P 500. Its future seems very promising, in large part due to its demonstrated ability to create new products that become highly successful -- it has even invented whole new product categories, such as with its iPod. Many kids already own an iPhone or iPad, not to mention a Mac computer -- and many of those who don't wish they did.

ALSO READ: 3 Things About Apple That Smart Investors Know

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Two people shopping with colorful bags in hand.

7. VF

VF (NYSE: VFC) is not a household name, but many of its offerings are present in homes with kids, and their brands are well liked. For example, VF is home to Vans, The North Face, and Timberland. With a market value recently close to $22 billion, VF also offers a nice dividend to its shareholders, recently yielding 3.56%.

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A Chipotle burrito in a basket and wrapper.

8. Chipotle Mexican Grill

It can be hard to find kids who aren't eager to dine at Chipotle Mexican Grill (NYSE: CMG). The company, with a recent market value near $45 billion, has close to 3,000 locations, where it serves responsibly sourced foods. It's not afraid to be innovative, either, as it recently announced that it's "launching Chipotle Burrito Builder on Roblox, a new simulation experience that will challenge players to roll burritos in the metaverse to earn Burrito Bucks, the brand's in-experience currency on Roblox."

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Take-Two Interactive characters racing motorcycles up a hill.

9. Take-Two Interactive

Speaking of video games, Take-Two Interactive (NASDAQ: TTWO) is a video game specialist well worth considering for any kids' portfolios -- and it can be fun to follow and discuss, too. It has been a solid performer with traditional games played on consoles -- such as Grand Theft Auto. Other franchises under its roof include Red Dead Redemption, Borderlands, and Civilization. The company is buying mobile game specialist Zynga (known for Candy Crush, FarmVille, Words With Friends, and Zynga Poker, among other things), which will help it push further into the mobile realm.

ALSO READ: Why I'm Buying Take-Two Interactive Stock

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A McDonald's restaurant from the outside.

10. McDonald's

Many kids are frequent devourers of McDonald's (NYSE: MCD) fare, and it can be an easy and fun company to follow, as new menu items are introduced, others are retired, and the company tries new strategies, such as introducing an app for online ordering and offering food delivery. The company's dividend recently yielded 2.2%, and it has grown at an average annual rate of 8% over the past five years.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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Starbucks Unicorn Frappuccino.

11. Starbucks

After school, many kids head to Starbucks (NASDAQ: SBUX) for a sweet concoction, and that, along with business from commuters and others, has helped the coffee-and-more purveyor rake in more than $30 billion annually. Some worry about unionization among its workforce hampering growth, but others see plenty of growth ahead, in part via international expansion. The company recently boasted more than 34,000 stores across the globe, including more than 5,000 in China.

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Ulta Beauty logo.

12. Ulta Beauty

Many young people are quite familiar with Ulta Beauty (NASDAQ: ULTA), the nation's largest beauty-focused retailer, with more than 1,300 stores in every U.S. state. It also sells wholesale to other retailers and operates a busy e-commerce site. The company recently sported a market value north of $20 billion, and it has been increasing its free cash flow in recent years.

ALSO READ: This Stock Could Be a Beautiful Addition to Your Portfolio

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Person exercising in Lululemon Athletica Mirror.

13. Lululemon Athletica

Lululemon Athletica (NASDAQ: LULU), with a recent market value of $50 billion, is a titan in the yoga pants arena and offers a range of other athletic apparel and accessories. It recently sported more than 550 stores globally. The company has a broad scope, too, offering curated fitness classes and Mirror, a wall-mounted display that facilitates workouts with and without classes. It's also been expanding into footwear.

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A Costco store.

14. Costco Wholesale

Costco Wholesale (NASDAQ: COST), a familiar shopping destination for millions, has a lot to recommend it as a portfolio candidate. It has long served three key constituents well -- employees, customers, and shareholders. (Many companies manage to only serve one or two well.) It offers above-average pay and benefits, only marks up most offerings by no more than 15%, and has grown robustly over many years. The only knock against it these days is that its shares are not trading at low levels.

ALSO READ: If I Could Buy Only 1 Stock, This Would Be It

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A screenshot of Instagram Stories.

15. Meta Platforms

Facebook, now a unit of Meta Platforms (NASDAQ: FB), may not seem ideal as an investment for young people, as many see it as a platform for their parents, but Meta also owns other properties, such as Instagram and WhatsApp. Instagram in particular is very popular with the younger set. Meta's Oculus line of virtual and augmented reality offerings is also of great interest to many young people.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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Four kids smiling.

Price matters, too

There are gobs of companies that might be great fits for your kids' portfolios. It all depends on their interests. Some other possibilities include General Motors, Lowe's, Southwest Airlines, Snapchat, Hershey, and Target.

Just be sure that you and/or your kids buy into great companies at good or great prices. Overpaying significantly for a terrific stock can lead to lackluster long-term performances.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Selena Maranjian owns Apple, Costco Wholesale, Meta Platforms, Inc., Netflix, Starbucks, Take-Two Interactive, and Walt Disney. The Motley Fool owns and recommends Apple, Chipotle Mexican Grill, Costco Wholesale, Lululemon Athletica, Meta Platforms, Inc., Netflix, Nike, Roblox Corporation, Starbucks, Take-Two Interactive, Ulta Beauty, Walt Disney, and Zynga. The Motley Fool recommends Hasbro, Lowe's, and Southwest Airlines and recommends the following options: long January 2023 $115 calls on Take-Two Interactive, long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short April 2022 $100 calls on Starbucks, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.

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