I don’t expect my daughter to become a stock fanatic like me, but I Portfolio with her It’s full of simple (ISH) businesses that elementary school kids might appreciate. Usually, we tried to prioritize buying new stocks each year, and developed a portfolio consisting primarily of the following holdings:
Her favorite products, her understanding business, and Brands she sees everywherethese stocks present a simple way to point out the number of companies I encounter in my daily life.
Currently, as the market continues to have “fixed” territory on its toe, adding to some of these stocks (and daughter’s longest position) is falling between 19% and 48%. Here’s what makes these dividend stocks a spectacular purchase for your children’s portfolio:
Image source: Getty Images.
Although railways are complex operators thanks to the nature of the maze, they argue that they are also a great investment for children. First, they can easily find “Wild” and make it easier to talk about stocks and investments.
What’s more, their business model is easy to grasp. Someone in this town wants something from that town over there and they move it there at the right price.
As for why we chose Union Pacific, it is the main railway operator around the neck of the forest and is very common to see. Equally important, however, Union Pacific’s Return on Investment Capital (ROIC) remains the highest than its peers.
This metric tells us that Union Pacific is best at generating returns from the capital it deploys in new projects. Whether they build siding extensions to accommodate longer trains, add new mainlines, upgrade terminals, or enable new features such as handling intermodal containers, the company generates out-sized profits from these add-ons.
For my daughter, Union Pacific has increased dividends for 18 consecutive years, increasing its annual payments of 17% over the past decade. Currently, the 2.4% yield is well above the 10-year average, but there is plenty of room for continuous growth as it only uses 48% of the company’s net profit. In addition to these dividends, Union Pacific has fist-buyed stocks back, cutting its total stock count by 31% since 2015.
Operating in a virtual two-tiered tier with the BNSF Railway in the west of the US, the Union Pacific benefits from a strong geographical moat that should continue to provide strong returns to its daughter’s portfolio for years to come. It now looks like the best time to buy a stable stock as tariff turbulence helps Union Pacific prices fall 22% from the high.
Special excess and surplus insurance companies The capital of Kinsale(NYSE: KNSL) Not one of the “core” holdings of the above daughter, but one of her oldest. The company appeared on my radar a few years ago and I bought a best-in-class insurance company for my daughter. Since then it has been four baggers.
I was hoping for growth stocks with dividend growth potential as I was planning to hold the company for at least 15 years until she might need money from an adult, and Kinsale perfectly fitted the bill. Over the past five years, Kinsale’s revenue has more than quadrupled, but dividend payments are increasing every year, almost doubled.
CEO and founder Michael Kehoe said in numerous revenue calls that this fierce growth rate will not last forever (it simply takes advantage of a booming market), but Kinsale remains the highest growth stock. Kinsale focuses on ensuring unusual niches such as gun range, homeless shelters and Axthrow venues, and thrives in areas where other insurance companies don’t go.
The company maintains an internal underwriting and claims management process, which creates a data-driven flywheel that will make Kinsale a more efficient insurance company with each new estimate that Kinsale offers. The 82% total ratio of Kinsale with this process is one of the best, even in the quarter affected by Palisades Wildfires.
With the company’s share price falling 18%, it appears to be the best time to “summate” this winning investment thanks to these fires and “normalization” from the peak pricing environment Kinsale has been enjoying for years.
Image source: Getty Images.
Investment papers on this are very simple. My daughter loves pools, and Pool Corporation is a best-in-class pool equipment distributor and an epic dividend growth stock. Pool Corp. links directly to the infamous, periodic US housing market, but the company has been 78 baggers since the turn of the century.
However, this circularity is now working for the company, as evidenced by the decline in sales in each of the last nine quarters. With a new home build in the US and new pools tied closely to this metric, Pool Corp. is waiting for a sunny day.
Now, it’s down 48% from an all-time high, but with a high that my daughter is likely to hold the company for another decade, the Pool Corp. turnaround may not be imminent, but seeing things through a decades-long lens should bring us benefits. need An imminent turnaround.
Plus, the company doesn’t risk failing anytime soon. Generate 62% of sales from non-decised maintenance products, and 24% increase from semi-reduced replacement and modified items by an additional 24%. Pool Corporation needs to help survive these downtimes.
The best thing for my daughter is that the company will reward her for her patience. Pool Corp., which currently pays a dividend yield of 1.6%, near its all-time high, has raised its payments for the 14th consecutive year, offering a growth rate of 17% over the past decade.
Consider this before purchasing stocks at Union Pacific.
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Josh Corn Lindquist He has positions in Adidas AG, Casey’s General Store, Chipotle Mexican Grill, Coca-Cola, Hershey, Idex Institute, Kinsale Capital Group, O’Reilly Automotive, Pool and Union Pacific. Motley Fools holds and recommends jobs in Kansas City, Canada Pacific, Chipotle Mexican Grill, Hershey, Kinsale Capital Group and Union Pacific. Motley Fool recommends the National Railway Canada, Casey’s General Store, IDEXX Institute, and $55 phone calls on Chipotle Mexico grills for the short term in June 2025. To Motley’s fool Disclosure Policy.
