Churchill Downs, Inc. (CHDN), Microsoft Corporation (MSFT), The Walt Disney Company (DIS): Stock Gift Ideas for Today’s Graduates

The Walt Disney Company (NYSE:DIS)

Readers most likely associate The Walt Disney Company (NYSE:DIS) with its family theme parks, but the company offers a larger and broader value proposition for long-term investors.

The Walt Disney Company (NYSE:DIS) is diversified across its lucrative ESPN television franchise, parks & resorts, Disney Channel and ABC Broadcasting, in addition to a growing films business with the recent acquisition of Lucasfilms. All in all, The Walt Disney Company (NYSE:DIS) has become a media and entertainment powerhouse that is stifling the competition.

ESPN dominates sports television within the United States and has no significant competition. ESPN is the only home for 17 of the NFL’s Monday Night Football games through 2021. Most recently, ESPN announced on May 16 it acquired the rights to tennis’ US Open beginning in 2015. Advertisers are well aware of the sports network’s dominance, which helps it raise its bargaining power.

Shares of The Walt Disney Company (NYSE:DIS) have significantly outperformed the S&P 500 over any time, including 1-year, 5-year, and 10-year periods. The Walt Disney Company also offers a direct investment plan, which requires a $250.00 minimum initial purchase. Subsequent purchases can be made with $50.00 contributions.

Foolish takeaway

A gift of stock for a recent high school or college graduate will be remembered for years, much longer than an incidental purchase or gift of money. In my view, the stocks above are well-positioned for the long-term and also well-suited for estate planning or investment in a college fund.

Readers who plan to purchase a small amount of stock should consider the following caveat. The high commission associated with purchasing a single share of stock through vendors such as OneShare often defeats the fundamental purpose for investing: creating lasting value and the potential for price appreciation. A $39.00 certificate fee on the purchase of Churchill Downs common stock increases the cost basis by nearly 50%, making the OneShare gift hard to justify.

The article Stock Gift Ideas for Today’s Graduates originally appeared on Fool.com and is written by John Macris.

John Macris has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. John is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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