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3 Top Stocks to Buy for Your Kids

November 11, 2016
in Kids

Are you interested in teaching your kids a valuable financial lesson that will last their lifetime? If the answer is yes, then we Fools think you should make them part owners of a company that they love. Doing so will teach them about the power of compound interest and may even help them cover a major expense down the road. With that in mind, we asked three of our Motley Fool contributors to highlight a stock they think that a kid would love to own. Read on to see why they picked Walt Disney (NYSE:DIS), Hasbro (NASDAQ:HAS), and Microsoft (NASDAQ:MSFT). Image source: Getty Images. Teach them the magic of investing Matt DiLallo (Walt Disney): While I don't have any kids yet, if I did, the first stock I'd buy for them would be Walt Disney. First and foremost, Disney is a great company with an exceptional track record of delivering solid revenue, earnings, and dividend growth. Further, given its strong brand, financial discipline, and track record, I'd bank on Disney continuing to put up solid financial results for years to come. That said, what makes Disney such a perfect stock for kids is that it's an excellent teaching tool. Parents, for example, can turn a trip to Disneyland into more than just a family vacation and use it to talk to their kids about owning a small piece of that vast Disney empire. Another idea is to show them all of the dividend payments that have piled up in their account, which is their share of the profits from all the toys and movies sold to other boys and girls. These are lessons that kids are more likely to grasp from a young age because Disney is a company they know and love. There's no guarantee Disney will be a magical investment and turn your kids into millionaires. However, the odds are pretty good that Disney will continue to do well as long as it makes products and content kids love. More importantly, parents can teach their children some magical investing lessons, which might turn out to be even more valuable than the money they make from owning Disney stock. Help them earn some play money Brian Feroldi (Hasbro): Kids love toys and games, so I think they'd be quite...

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