In this article, we will be taking a look at the 10 Best Long-Term Investments for Kids.
By late 2025, long-term investing for children has evolved from simple college savings into a full “cradle-to-retirement” wealth-building ecosystem. This shift is driven by new legislation, most notably the One Big Beautiful Bill Act (OBBBA), as well as expanded flexibility in traditional tax-advantaged accounts.
Youth-focused investing has continued to grow rapidly. As of June 30, 2025, assets held in 529 plans and ABLE accounts totaled approximately $568 billion across 17.3 million accounts, up from $508 billion as of mid-2024. The average 529 account balance is now around $30,960, reflecting both increased adoption and higher contribution levels.
A defining trend in youth savings is the “Roth‑ification” of 529 plans. Under new rules from the SECURE Act 2.0, families can roll over up to $35,000 lifetime from a 529 plan into a Roth IRA for the same beneficiary, provided the account has been open for at least 15 years. This change transforms 529 plans into long-term wealth-building tools, reducing the risk of unused education funds. Note that annual Roth IRA contribution limits still apply, and only contributions held in the account long enough and backed by earned income are eligible for rollover.
The most notable 2025 innovation is the creation of “Trump accounts” under the One Big Beautiful Bill Act (OBBBA). For children born between January 1, 2025, and December 31, 2028, the federal government will provide a one‑time $1,000 seed contribution when a Trump account is established. These accounts are designed to grow tax‑deferred and are invested in low‑cost U.S. index funds. Families and others can contribute up to $5,000 annually, and employers can make nontaxable contributions up to $2,500 per year on behalf of a child. Accounts generally begin accepting contributions in mid‑2026 and have rules similar to traditional retirement accounts, with withdrawals typically restricted until the beneficiary reaches adulthood.
Analysts forecast the global child and youth services market could grow about 8% annually, surpassing $235 billion by 2032. Federal 529 plan limits for K–12 rise to $20,000 in 2026. AI-driven personalized investing tools are expanding (EY), while long-term trends favor U.S. large-cap equities and technology.
With that said, let’s take a look at the best long term investments for kids.
Pixabay/Public Domain
Our Methodology
For our methodology, we began by filtering stocks with stocks that have returned over 40% in the past 5 years and that have been paying dividends for at least 10 consecutive years. Finally, we picked the top 10 stocks and ranked them based on their 5-year total returns in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Here is our list of the 10 best long term investment for kids.
10. Altria Group, Inc. (NYSE:MO)
Total Return (5Y): 40.54%
Altria Group, Inc. (NYSE:MO) stands tenth among the best long-term investments.
TheFly reported on December 22 that Goldman Sachs analyst Bonnie Herzog highlighted a key positive catalyst for MO following regulatory progress in its modern oral nicotine portfolio. The FDA granted marketing authorization on December 21, 2025, for six on! PLUS nicotine pouch products manufactured by MO’s subsidiary, Helix Innovations LLC.
This approval, the first under the FDA’s new pilot program for expedited Premarket Tobacco Product Applications (PMTAs), supports Altria Group, Inc. (NYSE:MO)’s “Moving Beyond Smoking” strategy by offering a differentiated, “soft-bodied” pouch experience in multiple flavors and strengths (6mg and 9mg), enhancing its competitiveness against dominant rivals like ZYN.
Herzog noted that this regulatory milestone could serve as a meaningful growth driver, positioning the corporation to expand its high-margin oral nicotine portfolio. The approval aligns with the company’s broader operational pivot toward reduced-risk products while maintaining traditional revenue streams.
In contrast, BofA Securities analyst Lisa Lewandowski maintained a Buy rating on MO but lowered the price target to $64 from $66 on December 19, citing evolving consumer trends and pressure from the illicit e-vapor market.
Altria Group, Inc. (NYSE:MO) is a major American tobacco and nicotine products company headquartered in Richmond, Virginia. It is one of the largest producers and marketers of smokeable and oral tobacco products in the United States, selling iconic brands such as Marlboro cigarettes, Black & Mild cigars, and smokeless products like Copenhagen and Skoal.
9. Kite Realty Group Trust (NYSE:KRG)
Total Return (5Y): 60.56%
Kite Realty Group Trust (NYSE:KRG) is one of the best long-term investments.
TheFly reported that on December 29, KRG announced that its Board of Trustees declared a special cash dividend of $0.145 per share of common stock. The dividend is scheduled to be paid on January 16, 2026, to shareholders of record as of the close of business on January 9, 2026. The company emphasized that this special dividend does not affect its regular quarterly dividend policy, which remains subject to the discretion of the Board.
Separately, on December 16, Jefferies analyst Linda Tsai maintained a Hold rating on Kite Realty Group Trust (NYSE:KRG) and raised the price target to $24.00 from $23.00, reflecting modest confidence in the company’s fundamentals and capital allocation amid mixed sector dynamics.
This action followed recent strategic moves by KRG to improve its portfolio quality. On December 8, 2025, the company completed approximately $474 million in property dispositions, selling a group of large-format power and community centers. Management cited these sales as a way to exit lower-growth assets, strengthen the balance sheet, and redeploy capital into higher-quality opportunities, a theme analysts view as supportive of long-term positioning even if near-term growth is uneven.
Kite Realty Group Trust (NYSE:KRG) is a U.S.-based real estate investment trust (REIT) headquartered in Indianapolis, Indiana. The company is a premier owner, operator, developer, and redeveloper of high-quality, open-air shopping centers and mixed-use retail assets, with a portfolio primarily anchored by grocery stores in high-growth Sun Belt and strategic gateway markets across the United States.
8. SLB N.V. (NYSE:SLB)
Total Return (5Y): 73.61%
SLB N.V. (NYSE:SLB) stands among the best long-term investments.
TheFly reported on December 18 that Piper Sandler analyst Derek Podhaizer maintained an Overweight rating on SLB and raised the price target to $45 from $42. This $3 increase reflects confidence in SLB’s international margin expansion and its ability to capture high-growth opportunities in the Middle East, such as the aforementioned Aramco contract.
On December 23, SLB N.V. (NYSE:SLB) announced it had been awarded a significant five-year contract by Aramco to provide stimulation services for Saudi Arabia’s unconventional gas development program. This agreement is part of a broader multi-billion-dollar initiative by Aramco aimed at increasing domestic gas production and diversifying the Kingdom’s energy mix.
Under the terms of the deal, SLB will deploy its advanced stimulation, well intervention, and frac automation technologies. Steve Gassen, SLB’s Executive Vice President of Digital & Integration, noted that the collaboration aims to redefine operational performance in unconventional resource development, leveraging SLB’s digital solutions to accelerate production efficiency.
SLB N.V. (NYSE:SLB) is a leading energy technology and oilfield services company headquartered in Houston, Texas, and originally founded in 1926 as Schlumberger. It provides a broad range of technology, products, and services to the global energy industry, serving customers in more than 100 countries.
7. Cisco Systems, Inc. (NASDAQ:CSCO)
Total Return (5Y): 73.83%
Cisco Systems, Inc. (NASDAQ:CSCO) is placed seventh among the best long-term investments.
TheFly reported on December 22 that shares of CSCO declined 26 cents to $78.16, reflecting mixed sentiment in the options market. Options volume was roughly in line with the average, with 51,000 contracts traded and calls outpacing puts, resulting in a put/call ratio of 0.77, above the typical level of 0.64.
Implied volatility (IV30) fell 1.28 points to 18.8, placing it in the bottom quartile of the past year and indicating an expected daily move of $0.93. Meanwhile, the flattened put-call skew suggested a modestly bullish tone, pointing to cautious optimism among options traders despite the slight drop in shares.
Separately, on December 17, Cisco Systems, Inc. (NASDAQ:CSCO) received a boost when Morgan Stanley analyst Meta Marshall maintained an Overweight rating and raised the price target from $82 to $91. In the research note, Marshall highlighted CSCO’s strong performance in AI-related growth drivers, noting that the company had surpassed $1 billion in AI-related orders, reaching $1.3 billion from hyperscale customers. This momentum suggests that AI-driven revenue could contribute around 5% of CSCO’s total business by fiscal year 2026, up from approximately 2% currently.
Cisco Systems, Inc. (NASDAQ:CSCO) designs and sells a broad range of technologies across networking, security, collaboration, and applications. The company is currently leveraging its acquisition of Splunk to enhance its recurring software revenue and observability capabilities.
6. Reinsurance Group of America, Incorporated (NYSE:RGA)
Total Return (5Y): 76.84%
Reinsurance Group of America, Incorporated (NYSE:RGA) is one of the best long-term investments.
TheFly reported on December 23 that Piper Sandler analyst John Barnidge maintained an Overweight rating on RGA and raised the price target to $230 from $220. The firm’s decision reflects continued confidence in RGA’s strategic positioning and future performance. A significant catalyst for this optimism is the company’s recent strategic organizational update, including the appointment of Ryan Krueger as Senior Vice President of Investor Relations (effective January 5, 2026), which is viewed as a move to enhance communication of the company’s long-term value to the investment community.
Earlier, on December 15, Morgan Stanley analyst Bob Huang maintained an Equal-Weight (Hold) rating on Reinsurance Group of America, Incorporated (NYSE:RGA) but increased the price target to $208 from $195. This upward adjustment suggests a stabilizing outlook for the reinsurer’s valuation despite a more neutral stance on immediate upside compared to Piper Sandler.
Reinsurance Group of America, Incorporated (NYSE:RGA) specializes in life reinsurance, living benefits reinsurance, and group reinsurance. Headquartered in St. Louis, it is one of the largest life reinsurers in the world, with operations in the United States, Canada, Europe, and Asia-Pacific.
5. Assurant, Inc. (NYSE:AIZ)
Total Return (5Y): 77.24%
Assurant, Inc. (NYSE:AIZ) is placed fifth on our list among the best long-term investments.
TheFly reported on December 29 that Piper Sandler analyst John Barnidge maintained an Overweight rating on AIZ and raised the price target to $264 from $252.
The price target update follows Assurant, Inc. (NYSE:AIZ)’s announcement of a 10% increase in its quarterly dividend to $0.88 per share, marking the company’s 21st consecutive year of dividend increases. In addition, AIZ continues to return capital to shareholders through a newly authorized $700 million share repurchase program announced in late 2024. Analysts view the company’s consistent capital return policies and strategic financial initiatives as supportive of its valuation.
Assurant, Inc. (NYSE:AIZ) is a Fortune 500 global specialty risk management and insurance company headquartered in Atlanta, Georgia. It provides a wide range of insurance and protection solutions designed to help businesses and consumers manage financial risk associated with homes, connected devices, vehicles, and other lifestyle assets.
4. Radian Group Inc. (NYSE:RDN)
Total Return (5Y): 79.16%
Radian Group Inc. (NYSE:RDN) is one of the ten best long-term investments on our list.
TheFly reported on December 18 that Keefe, Bruyette & Woods (KBW) analyst Bose George raised the price target on RDN to $41 from $40 while maintaining a Market Perform rating on the shares. In a research note, the analyst expressed cautious optimism on mortgage insurers, noting that companies like RDN are expected to generate double-digit book value growth, which supports the firm’s constructive outlook.
Additionally, on December 10, Radian Group Inc. (NYSE:RDN) received all necessary regulatory approvals for its $1.7 billion acquisition of Inigo Limited, a specialty insurer underwriting through Lloyd’s of London. The deal is expected to close in February 2026 and represents a strategic shift for the business, expanding the company from a U.S.-focused mortgage insurer to a global, multi-line specialty insurer. Analysts view the approval as a significant milestone, reducing execution risk and supporting a more constructive outlook on the company’s growth and earnings diversification.
Radian Group Inc. (NYSE:RDN) is a U.S.‑based mortgage insurance and real estate services company headquartered in Wayne, Pennsylvania. The company specializes in private mortgage insurance (PMI) that protects lenders against losses from borrower defaults on residential first‑lien mortgage loans, enabling broader access to homeownership, especially for borrowers with lower down payments.
3. Analog Devices, Inc. (NASDAQ:ADI)
Total Return (5Y): 86.58%
Analog Devices, Inc. (NASDAQ:ADI) stands third among the best long-term investments.
TheFly reported on December 19 that Truist Securities analyst William Stein maintained a Hold rating on ADI while raising the price target to $291 from $258. The update reflects the firm’s latest assessment of the company’s valuation outlook, though the Hold rating indicates a cautious stance on near-term stock movement.
Additionally, on December 18, a Form 4 filing with the SEC revealed that Martin Cotter, Senior Vice President of Vertical Business Units at Analog Devices, Inc. (NASDAQ:ADI), sold 5,000 shares of common stock on December 17. The transaction was executed at an average price of $271.19, totaling approximately $1.36 million. Following this sale, Cotter retains direct ownership of 59,664 shares, valued at roughly $16.18 million.
Analog Devices, Inc. (NASDAQ:ADI) is a global semiconductor leader headquartered in Wilmington, Massachusetts, that designs, manufactures, tests, and markets analog, mixed-signal, and digital signal processing integrated circuits (ICs), software, and subsystems used to bridge the physical and digital worlds.
2. TD SYNNEX Corporation (NYSE:SNX)
Total Return (5Y): 88.20%
TD SYNNEX Corporation (NYSE:SNX) is another best long-term investments for kids on our list.
TheFly reported on December 17 that Morgan Stanley analyst Erik Woodring maintained an Overweight rating on SNX while lowering the firm’s price target to $177 from $181. The adjustment followed a broader review of the IT distribution sector, with Morgan Stanley remaining constructive on long-term, AI-driven hardware demand while taking a more cautious view on near-term fundamentals.
Recent analyst adjustments from Morgan Stanley come ahead of TD SYNNEX Corporation (NYSE:SNX)’s upcoming earnings report, which has become the primary near-term focus for investors. On December 11, the company announced it will report full-year and fourth-quarter fiscal 2025 results on January 8, 2026.
Despite recent price target moderation, SNX’s underlying outlook remains constructive. Management has reiterated solid fourth-quarter guidance, forecasting non-GAAP gross billings of $23.0–$24.0 billion, representing approximately 11% year-over-year growth, and non-GAAP EPS in the range of $3.45 to $3.95.
Operationally, the business continues to invest in long-term growth initiatives. On December 10, 2025, SNX launched its “AI Game Plan,” a strategic program designed to help partners accelerate AI adoption and support participation in the AI-driven hardware refresh cycle highlighted by several analysts.
TD SYNNEX Corporation (NYSE:SNX) is a leading global IT distributor and solutions aggregator that connects technology vendors with resellers, service providers, and enterprise customers across more than 100 countries.
1. TE Connectivity plc (NYSE:TEL)
Total Return (5Y): 91.46%
TE Connectivity plc (NYSE:TEL) tops our list for being one of the best long-term investments.
TheFly reported on December 19 that Truist Securities analyst William Stein maintained a Hold rating on TEL and raised the price target to $240 from $239. This update followed the company’s recent Investor Day, during which management outlined a strategic focus on doubling AI-related sales over the next two years. Truist acknowledged TEL’s strong positioning in the AI supply chain, but noted that projected total sales growth of 6–8% is moderate, reflecting a cautious but stable outlook for the near term.
The recent wave of target price adjustments for TE Connectivity plc (NYSE:TEL) is closely tied to its operational and financial updates in late 2025. On December 17, the company’s board approved a quarterly cash dividend of $0.71 per share, payable on March 13, 2026, to shareholders of record at the close of business on February 20, 2026. The ex-dividend date is also February 20, 2026, reflecting TEL’s ongoing commitment to returning capital to shareholders.
TE Connectivity plc (NYSE:TEL) is a global industrial technology company that designs, manufactures, and sells connectivity and sensor solutions used to connect and protect power, signal, and data in a wide range of applications. The company serves industries including automotive, aerospace, defense, industrial automation, energy, medical devices, data centers, and communications infrastructure.
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