This has been a historic year for the financial and stock markets.
Fear and escalation of a trade war between the US and China, aggressive interest rate cuts from worried central banks, and the controversy over Brexit and the UK elections were spotlighted.
However, US equity markets rose to an all-time high, with European equity markets not far behind. The resilience of global equity markets makes 2020 another very exciting year for investors who buy baby stocks.
However, there are some problems to be solved to determine the most profitable baby stocks. We have carried out qualitative research and prepared for you the top five baby stocks for investment.
In this article, we will discuss which baby stocks will be the best to invest in the stock markets today. Stay tuned for all the details.
Top baby stocks to invest in today
Now that we’ve established some ground rules, it is time to take a more in-depth introspection into the best dividend stocks for today.
Parenthood brings along a ton of extra responsibilities, and providing for your family sits right there at the top of the list.
And since you are already in the parenthood business, here are the top baby products companies you should consider buying shares in, to generate extra income for you and your family:
1. Koninklijke Philips N.V. (NYSE: PHG)
Koninklijke Philips is one of the largest health technology companies in the world. It operates in a wide variety of segments, from diagnosis and treatment to connected care and personal health.
They offer excellent mother and childcare and oral healthcare products. They are also known for being the best baby bottle warmer on the market.
The company is trading on NYSE under the PHG symbol, and according to the last data published on July 22nd, the registered revenue for the quarter was $5.25 billion.
The current share price is $45.40, and to invest in their billion dividend stock, you will need a brokerage account.
2. Kimberly-Clark Corporation (NYSE: KMB)
Also trading on the NYSE under the KMB symbol, Kimberly-Clark Corp is mostly known as the primary manufacturer of the popular disposable diapers, Huggies.
This giant Corp also produces and distributes other paper products like Kleenex tissues and Cottonelle toilet paper.
What are the best dividend stocks to buy? KBB is one of the best answers, with the current price share residing at $142.06.
3. Johnson & Johnson (NYSE: JNJ)
If you are looking for quality income stocks, you need to look no further than Johnson & Johnson. The company, listed under the JNJ symbol, is top-rated for its Jonson’s Baby products.
Aside from this, it also owns dedicated websites like BabyCenter.com and Baby.com, making it one of the top five dividend baby stocks.
The current share price is $128.60, and the generous yield offered by the company is 2.7 percent.
4. Procter & Gamble Co (NYSE: PG)
Much like J&J, Procter & Gamble can be considered somewhat of a “dividend aristocrat,” offering a 3 percent yield and thus being one of the smart stocks to invest in.
This giant multinational trust is mostly known for manufacturing and distributing Pampers, probably the most popular disposable diaper brand in the world.
Aside from this, Procter & Gamble, listed on the NYSE under the PG symbol, is also known for selling high-quality products such as Dreft, Luvs, and several other personal childcare items. The company’s yield is 2.2 percent, and the current price per share is $124.73.
5. Mothercare (OTC: MHCRF)
Mothercare is one of the veteran companies that concerns all newborn-related programs, established in the UK. They have over 50 years of experience in this field.
They are mostly known for their Pushchairs, Prams, Maternity, and lines of clothing, but also for the more recent baby toothbrush line. The company, listed as OTC MHCRF, had an extremely rough start in 2019 and is currently expected to close down over 60 units and cut down over 900 jobs.
It is what makes it one of the best cheap baby stocks to buy right now, its shares being currently quoted at the LSE at £13.82 per unit. Nevertheless, the company remains the UK’s No. 1 childcare retailer, representing one of the best dividend stocks to buy this year.
Promising baby stocks: Why buy baby stocks today?
One of the main driving forces behind the global financial and stock markets trading at high or near record highs is central banks’ actions around the world, which are worried about a resumption of recession.
The US Federal Reserve, the Reserve Bank of Australia, and the European Central Bank have all cut interest rates in the hope that lower financing costs will encourage businesses and consumers to borrow and invest more in the economy to spur economic growth.
In fact, in late 2019, billionaire investor and hedge fund legend Paul Tudor Jones said in an interview with CNBC that the economy now has an “explosive combination of monetary and fiscal policy” that ultimately helps propel the market.
However, investors cannot afford to be overconfident as 2020 faces a series of events, such as the US presidential election, the Coronavirus pandemic, and other events.
Having the right criteria in determining the best stocks to trade in the international stock markets will be essential this year.
What baby stock companies should I invest in today?
All of the baby stock companies and statistics enlisted above constitute reliable investing opportunities due to a large number of factors. However, you should never follow instructions or advice blindly, especially if you are just starting to play the financial and stock markets.
If you are still wondering what baby stock companies to invest in today, the first thing you should do is to perform thorough research on your own, on all companies listed above.
Pay great attention and consider the present trends in the financial and stock markets before choosing the most suitable one for you. And one of the most important things you should consider in the beginning would be using only your available savings funds, never go all in!
The market fluctuates, thus presenting risks that you shouldn’t take with your current income. Always use only your savings.
Regardless of the investment strategy, analysts exercise caution and follow policy. The financial and stock markets have become too dependent on politicians, and they are unpredictable, while money loves silence and predictability.
How to buy stocks for a baby
Babies can’t directly own stock accounts, but there are ways to invest for their future. Here are two popular options:
1. Custodial Brokerage Account
This is a regular brokerage account opened by an adult (parent, guardian) on behalf of a minor (the baby).
You control the investments until the child reaches the age of majority (18 or 21, depending on your location). This allows for long-term growth for the child’s benefit, like future education or a down payment on a house.
2. 529 Plan
A 529 plan is a tax-advantaged savings account specifically for education expenses.
Anyone can contribute to a 529 plan for a child, and the earnings grow tax-free when used for qualified education purposes. This is a great option if your primary goal is saving for college.
Things to Consider
- Investment Timeframe: How long do you plan to invest? Custodial accounts offer more flexibility, while 529 plans have stricter rules regarding withdrawals for non-qualified education expenses.
- Tax Implications: Earnings in a custodial account may be subject to taxes if they exceed a certain amount (the “kiddie tax”). 529 plans have tax advantages for qualified education expenses.
Next Steps
- Research different custodial brokerage firms or 529 plan options.
- Consider your investment goals and risk tolerance.
- Consult with a financial advisor for personalized guidance on choosing the right option for your situation.
Summary
These baby stock companies have reported significant revenue increases and excelled in total sales in Q3.
Before bringing our focus to them, here are a few general guidelines all parents should take into consideration before going into the financial and stock markets:
- The best way to learn how to analyze and play the financial and stock market is by creating a fictitious portfolio of shares. It will give you a great insight into predominant trends.
- What are the best dividend bay stocks to buy? You will be able to reach an answer on your own, if you start reading expert business magazines, such as Kiplinger’s, Forbes, or The Economist.
- Once you have figured out the best baby stocks to invest in, the first shares you will purchase should be in this sector.
What are your thoughts about the investment plan for this year? Don’t hesitate to share your passive income ideas with us.
Elizabeth Barlettah is a business analyst and blogger who reviews brands like Pocket-lint. She focuses on software development, marketing strategy planning, and helps companies grow their business and offers SEO-optimised copywriting services. When Elizabeth is not busy writing her blog, she strums the guitar. At present, she writes for top-mom.
