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% |