A very common theme I’ve learned to understand is that people tend to gamble their own money like sailors, but prefer to be stewards of austerity when it comes to inheritance or gifts. They will buy Chinese burrito accounting scams in their own accounts on margin, but Disney for their stupid grandkids. If you really think about it, the exact opposite should occur, being that the stupid grandkids are considerably younger and have many years of earnings ahead.
Nevertheless, I understand the sentiment of wanting to gift the kids with something that will be around and can grow for an extended period of time.
There are several prerequisites one must apply when screening for these stocks, the first being dividends. Your choices MUST pay dividends. Do not force me to explain why; instead, why don’t you take my word for it? The second and third are minimum market cap of $1 billion and earnings per share profitability. Discard with the high beta money losers. After all, these securities are for your stupid grandkids.
Lastly, I like to screen for growth when I can. I’ve placed in a minimum growth metric of 15% for revenues and 5% for earnings. In addition, I’ve taken into consideration return on equity, a true measure of a companies vibrancy.
Here are my picks and this is my screen.
QCOM
AMT
INTU
EMN
WLP
ETN
IACI
BX
MTB
BKH
This was designed to be implemented as a portfolio, not singular picks. I’ve found, in my many years of experience, managing money professionally, that having the larger picture in mind is always preferred to the degeneracy of the short lived piker day trader bastard.