She is 18 years old. Luckily she has 9.5k in savings for her future college use in two years.
I am suggesting her to invest in dividend stocks for now.
She doesn't believe in dividends investments and she doesn't have much interest. I will be the one who will be managing her account and just showing her the progress.
I plan to invest her 9.5k in $1,200 increments, so it means she can own about 8 companies for now.
My minimum goal is to make her money work by earning dividends because she has two years ahead of her. This is why I mostly want to concentrate on stocks, which earn more than 3% yield.
Maximum goal is to earn on market fluctuations because I plan to pick stocks, which are trading at their lowest or close to lowest now and sell them when they reach near their 1 year target.
Below is my list for my daughter as of today August 4 market.
As you read above she doesn't know much about stock market and doesn't want to learn at this moment, so I made my picks based on my watch list and I chose criteria which would be easy to explain to her at this moment such as dividend yield and 1 year target price.
I will have to explain her that 1 year target price might happen or not but I believe that stocks I picked have some potential and pretty safe to invest. Out of my list she will have to pick 8 stocks, which I will purchase for her.
If some stocks will reach target, I will sell it and create a new list for her to pick a new stock.
I would really appreciate your comments and suggestions because I really want this project to succeed and I want to prove to my daughter that dividends stocks investment can be good. Please let me know if you have some stocks in mind, which I might have missed.
| symbol | name | current price | 1 year target | dividend yeild |
| Natural Gas | ||||
| SE | Spectra Energy | $28.97 | $36.30 | 5.00% |
| CNP | Centerpoint Energy | $18.86 | $22.00 | 5.40% |
| KMI | Kinder Morgan | $33.66 | $46.30 | 5.60% |
| Drugs | ||||
| GSK | GlaxoSmithKline plc | $43.45 | $45.00 | 5.70% |
| Gold and Natural Resourses | ||||
| AUY | Yamana Gold | $1.82 | $4.21 | 2.90% |
| BBL | BHP Billiton | $36.13 | $46.50 | 7.10% |
| Manufacturer | ||||
| CAT | Caterpillar | $76.60 | $82.00 | 4.00% |
| Canadian Banks | ||||
| BNS | Bank of Nova Scotia | $48.80 | $73.83 | 4.50% |
| RY | Royal Bank of Canada | $58.04 | $89.65 | 4.10% |
| CM | Canadian Bank of Commerce | $70.56 | $105.00 | 5.10% |
| TD | Toronto Dominion Bank | $40.09 | $60.40 | 4.10% |
| BMO | Bank of Montreal | $55.49 | $83.90 | 4.50% |
| Oil and Gas | ||||
| COP | ConocoPhillips | $49.87 | $71.15 | 5.70% |
| BP | British Petroleum | $36.54 | $41.58 | 6.60% |
| XOM | Exxon | $77.17 | $90.53 | 3.70% |
| NE | Noble Corp | $11.47 | $16.50 | 12.20% |
| CVX | Chevron | $85.21 | $106.21 | 4.70% |
| Consumers Goods | ||||
| PG | The Procter & Gamble Company | $75.91 | $85.50 | 3.30% |
| JNJ | Johnson & Johnson | $99.80 | $109.59 | 3.00% |
| Stores | ||||
| WMT | Walmart | $72.25 | $80.24 | 2.70% |
| Wireless | ||||
| T | ATT | $34.58 | $37.17 | 5.50% |
| VZ | Verizon | $46.67 | $51.24 | 4.80% |
| Entertainment and Toys | ||||
| SEAS | SeaWorld | $17.68 | $23.09 | 4.70% |
| MAT | Mattel | $22.62 | $28.00 | 6.50% |
| Drinks | ||||
| KO | Coca Cola | $41.85 | $45.26 | 3.30% |
| Hotels properties | ||||
| LHO | LaSalle Hotel properties | $32.85 | $39.50 | 5.30% |
| Cars | ||||
| F | Ford | $14.91 | $17.41 | 4.20% |
Hi HHWG,
ReplyDeleteNice project you've got here!
It's rather unfortunate that she is not with you on this project, but I think it's a good thing you stick with it, anyways. As long as you are able to back her up when the investments are not working out as well as we all would expect of course. :)
As you know, 2 year is not anywhere near the horizon a DGI portfolio would need in order to perform in the best possible way.
However, it should still be possible to beat any interest rate you could have gotten at your local bank.
Your list looks good. I would start with companies that are close to their ex-dividend date. I've got 3 additions to your list: EMR, TGH & PEP.
Oil & gas could be tricky. They have been on decline for a while. The companies you've selected from this sector are very solid and will definitely grow back to their old values, but whether this will be within the next 2 years, remains uncertain to anyone.
Good luck!
Best wishes, DfS
Hello DfS! I really appreciate your input! I added EMR to her list. TGH would be tough to explain what really they are doing. I was considering PEP but it didn't meet my criteria of trading close to the lowest. I doubt if she picks lots of oil and gas because she was telling me how she read that gas prices are going down, so she thinks it's not good for her stocks picks. I will make a new post with her picks, which will be interesting to see. Thanks.
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