August 7, 2020
It looks like there may be somewhat of an uptick in birth rates as a result of the Great Lockdown of 2020, leaving many family members and friends scrambling to find the perfect gift to welcome the bundle of joy. For those in this situation or looking for a somewhat outside-the-box present for an older child, consider these kid-friendly stocks.
While a share or two of a publicly traded stock may not seem as appealing as a cute Instagram-ready outfit on a baby or have the immediate utility of a warehouse club-sized pack of baby wipes, it will make for a good entry point to start them on the path to learning about the financial markets down the road. That said, here are a few stocks that the little ones may find appealing at different stages of their youth:
Activision Blizzard (Tii:ATVI)
E-sports have become increasingly popular with one tournament, the League of Legends World Championship Semifinals, famously selling out the iconic Madison Square Garden in 2016. As the company behind Overwatch, Hearthstone, StarCraft, and other popular games featured in e-sports tournaments, shares of this company will no doubt appeal to a young gamer.
Funko Inc. (Tii:FNKO)
These pop culture collectibles have caught on in recent years with some limited edition figurines selling north of $1,000. But for a substantially smaller investment, consider giving a few Funko shares as a prelude to discussing supply and demand and collectability followed by an introduction to investing in stocks.
Generations of kids have played with Barbie dolls, Hot Wheels, or some of the thousands of Fisher-Price games. By owning a few shares of Mattel, children can own a piece of the world’s second-largest toy manufacturer and have a vested interest in the games and toys purchased for the household.
The Hershey Company (Tii:HSY)
Let’s face it, kids love candy. As one of the largest chocolate manufacturers in the world, odds are there is something in Hershey’s 80-something brands that will be irresistible for its youngest shareholders. Whether its Hershey's Kisses, Jolly Ranchers, Ice Breakers, M&Ms or Reese's Peanut Butter Cups, there is sure to be a confection that’s on every kid’s trick-or-treat wish list. And if owning a share or two piques interest in the markets, this purchase becomes even sweeter.
The Walt Disney Company (Tii:DIS)
This list would be incomplete without the 800-pound gorilla of kid appeal. Between its ownership of Marvel superheroes, the Star Wars universe, theme parks, cruise lines, movie and animation studios, video streaming platforms, toys and a boatload of other properties too long to list, gifting a share or two of the House of Mouse would make an outstanding entrée into the wonderful world of investing.
Yum Brands (Tii:YUM)
Ask just about any youngster where they would like to go for a bite and there is a decent chance KFC, Pizza Hut, or Taco Bell, makes the cut. As one of the largest fast-food restaurant companies in the world, a gift of Yum Brands stock could be a learning opportunity on franchising, market share and competition.