This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Five Stocks for Your Kid's Portfolio

Here's another area that would interest a kid: snack time. Kids love to chow down. Looking for a food company, look no further than Kraft (KRFT).

While the youngsters may not be ready for Maxwell House or A.1. Steak Sauce, they are sure to appreciate brands such as Capri Sun, Jell-O, Kool-Aid, Lunchables and Kraft Mac n' Cheese.

Shares have erupted nearly 23% year-to-date and future growth will likely always be there as long as kids keep eating.

The 3.6% dividend yield is also nice, despite the large run in share prices. The company will likely continue acquiring large brand-name foods that are enjoyed around the world to maintain competitive shelf space among grocers.

Perhaps it's the solid dividend that would attract this generation of kids to these stocks. This next stock yields close to 3.25%, is up 22% this year, and makes Barbies, Polly Pockets and Hot Wheelz.

Mattel (MAT) began operations in 1948 and has been going strong ever since. Mattel also makes American Girl dolls and gets these kid-investors started early with their brands through Fischer-Price.

Some savvy kids could double dip by gobbling up shares of the 3.6% yielder Hasbro (HAS).

The toy company is responsible for brands like Nerf, G.I. Joe, Transformers and Marvel action figures. It also has board games such as Twister and Hungry Hungry Hippos, making this another obvious choice for youngsters.

Finally, what kid doesn't like to get a meal with a toy? Better yet, a Happy Meal from McDonald's (MCD)?

The Golden Arches introduced the Happy Meal in 1979 and it has been a winning strategy. McDonald's is one of the most recognizable brands around the world for just about any age group.

Toss in a PlayPlace and kids could spend hours in a Mickey D's. So why not invest in it?

Although McDonald's, at 11.5%, has underperformed the S&P 500's 14.5% growth, it does have a 3.1% dividend yield and has one of the most consistent payouts in the industry.

It's clear that while the kid-approved portfolio is certainly tailored to their liking, the stocks have a responsible focus on balancing growth, stability and income. With the exception of Disney, all the companies above have a yield north of 3%.

While kids might names they can recognize, they might also care about the importance and efficiency of compound growth, which will pay for future summer vacations down the road.

At the time of publication the author was long DIS and MCD.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,910.53 -4.54 -0.03%
S&P 500 1,962.15 -2.53 -0.13%
NASDAQ 4,401.0090 +4.8050 0.11%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs