The Following are the stocks that might be kids’ friendly but are very good to start investing in a stock market with.
1. Walt Disney
Buying shares of Walt Disney stock for your children might just mold them into buy-and-hold investors for the rest of their lives. 2020 didn’t bode well for the House of Mouse’s income statement when you look at the company’s parks and cruise lines being shuttered on account of the pandemic, causing them to turn in their first loss in four decades. Not a report card anyone wants to bring home. But, who cares? Do you want to watch Disney classics any less? Doubtful. Your kids still love Disney and investors do, too.
Perhaps you’ve noticed Disney’s stock sailing to all-time highs despite this short-term setback. Why? Much like a strong investment portfolio, they’ve diversified their business across several different areas.
They weathered this storm and will stick around for many years to come if their Disney+ business has anything to say about it.
The takeaway: No matter your status as a young investor or seasoned futures market trader: Don’t be so risk-loving that you keep all of your money in one stock.
Amazon dominates the retail world. They are a one-stop shop for nearly anything you could want. As the company continues to grow and evolve, their stock price has seen an equally impressive increase. They’ve grown from $1.50 (split-adjusted) in 1997 to more than $3,000 today. That’s 37%+ annualized growth! Amazon is never going away; they’re just too big to fail in many respects. They’ve got a well-diversified business with ample opportunities to enter new markets and disrupt well-seated industry incumbents.
Their mentality of constantly investing and innovating sets new expectations for customer service every other company can only hope to emulate or get left in the dust.
They’ve redefined customer expectations and sell everything you can imagine. Without them, we wouldn’t have free two-day (or even next day) shipping.
Apple is the world’s largest company. They’ve got one of the most recognizable brands of any company on this list and are well known as a premium product. They manufacture hardware, produce proprietary software and provide services that work seamlessly together.
Apple is a lifestyle brand; it’s in everything you do with your phone or tablet and has been for decades now. The original mouse was actually invented by Apple back in 1979 when there were no computer mice made yet!
That means not only can we expect many more years from them but also new innovations as well. Consider this as a long-term investment and stay tuned for the continued market dominance they seem to command.
4. Alphabet (Google)
Alphabet, or the parent company of the better known subsidiary, Google, has the world’s leading search engine. Rather, the two leading search engines: Google Search and YouTube.
Alphabet is another stock that’s worth considering if you’re looking at investing from an early age onwards. Whenever you have a question and type it into a browser or phone or ask it out loud to a smart speaker, odds are Google provides you with the answer.
The company has created a market dominant position in the Search market and continues to gain market share with its Google Cloud business. The company isn’t shy about investing in its business and using that investment to grow into new areas and build the company’s market value.
Tesla is a well-known automaker that is also a pioneer in the electric vehicle industry. Elon Musk, Tesla’s founder and CEO has been vocal about his goals to bring sustainable energy solutions to the world.
Tesla manufactures most of its vehicles from its Fremont factory (outside of San Francisco) and uses batteries made at its Gigafactories. In partnership with Panasonic the company manufactures solar panels for homes, business installations as well as commercial products like the Powerwall. This lithium-ion battery stores excess energy generated by rooftop panels or during off peak hours when electricity rates are lower than can be used later on.
Also Read: Financial Tips For Young Adults In 2022
Kids would do well to invest in Tesla shares because Tesla is a company that supports renewable energy and Elon Musk has been an advocate for sustainable practices- both trends which bode well with younger generations. Tesla also continues to grow as it invests in new products like the Tesla Semi which could revolutionize how people transport goods across long distances. It’s also developing its own electric bus, Model Y SUV or pickup truck, among other things. The stock price of Tesla fluctuates so investing money into shares requires research on when to buy low and sell high but with such innovations from one of the leading companies in electric vehicles there are plenty of reasons why kids should invest their hard earned allowance dollars in this innovative car company.
If your kids are hooked on McDonald’s, making them investors could be a good idea. While the company has had a bit of a rough patch during 2020 due to COVID, which physical retail or restaurant hasn’t?
You can teach your kids about income generating assets through buying this company’s stock and claiming their juicy dividend. The company has continually raised its dividend payout for the last 44 years and currently yields around 2.2% at current prices. You might get them to bank those dividends now by reinvesting them back into the stock for a later date when they might need the money.
Facebook debuted on the stock market about a decade ago when the company’s value was around $104 billion. It has since grown to be one of the most valuable companies in history, with its stock price recently exceeding $320 per share with a market capitalization of $925 billion. It competes with Google in the digital advertising space and likely accounts for a decent chunk of your kid’s screen time through its Instagram app. As for yourself, in addition to “The Gram”, you might find Facebook as one of the more used apps on your phone.
Seeing as how this doesn’t appear likely to change anytime soon, owning a piece of the action might make for a smart buy and hold investment to take a share of their future earnings starting at an early age.
Netflix is a great stock for kids to buy in 2021. It is a company that provides media and video streaming services through its online library of movies, TV series, documentaries, and other content. The app has been downloaded by over 200 million users globally with the service now available in 190 countries worldwide.
Netflix competes primarily with Hulu, Amazon Prime, HBO Max, Disney+, Google’s YouTube as well as Facebook-owned Instagram TV who also offer similar offerings. Not to mention traditional television.
Netflix remains king of content for the time being and has made its ambition to remain in that spot by investing heavily in original content that appeals to everyone in the family. Time will tell but pre-COVID, Netflix seemed a bit less necessary in my monthly budget.
Now, I can’t imagine not having it appear on my credit card statement each year. Netflix stock should provide your child some exposure to this emerging trend of on-demand entertainment at an early age. This continued trend may pay off down the road if they are active media consumers or aspiring filmmakers themselves one day when they grow up.
Nike sells athletic shoes, clothes, equipment- basically anything related to sports performance gear. Nike is all about innovating on their products so the athlete gets better results while wearing Nike products. Nike is a very “kid-friendly” brand for the younger generation, and it has been around since the early 1980s (since 1972).
Whether your kids are walking to school in trendy Nike shoes or cheering on their favorite team at a basketball game, they will most likely be wearing some of Nike’s clothing.
If you want to buy shares with your child that also meets an interest like sports performance gear then this might be the right stock for them
Coca-Cola is the world’s largest beverage company and one of the most recognized brands in history. The Coca-Cola Company owns an extensive portfolio of nonalcoholic beverages, including sparkling drinks, still drinks, juices, teas and coffees. Coca-Cola is also a “kid friendly” brand with many young kids buying their products from vending machines to drinking refreshing Coca-Cola on a hot summer day. If you want your child to invest money that will help them drink more Coca-Cola then this might be the right stock for them!
However, you’ll likely want them to drink the company’s healthier products more so than their namesake product. But don’t worry because they’ve got plenty of healthier options to buy instead.
Your kids may also enjoy owning rival toy manufacturer Mattel, which creates popular toy brands like Barbie and Fisher-Price. Mattel had struggled for the past several years, but in 2020 it started to make strides of improvement. Mattel and Hasbro were hit hard by the bankruptcy of Toys R Us, but both companies are showing a slight rebound with Mattel’s online sales up 50%.
Like Hasbro, Mattel is a riskier pick compared to Disney. These stocks both offer buyers an opportunity to invest in two popular kids’ brands.