In this article, we will be taking a look at the 12 Best Stocks to Own for Grandchildren.
Teaching kids about stock market trading can give them a big edge in a time when financial literacy is becoming more and more acknowledged as an essential life skill. Research indicates that early financial education promotes better money management, the development of long-term wealth, and increased financial security as an adult. Children who are exposed to investing at an early age might acquire traits that will influence their financial destiny, such as patience, risk assessment, and the power of compounding. According to a 2023 National Financial Educators Council (NFEC) research, the average American loses $1,819 a year as a result of their lack of financial literacy.
Early investment education can help close this gap and provide kids with the tools they need to deal with difficult financial situations. Children who are exposed to stocks are better able to comprehend ideas such as market swings, diversification, and risk and reward. Gaining knowledge about how businesses function and increase their earnings also contributes to a better comprehension of the economy. Common financial blunders like emotional investment, excessive debt, and inadequate money management can be avoided with this knowledge.
The power of compound interest is among the strongest arguments for teaching kids about investing. Simply by starting early, a child who starts saving at age 10 rather than waiting until age 30 could accumulate a lot more wealth by retirement. Educating kids about stocks promotes financial decision-making discipline and critical thinking. They learn the importance of investing for the future rather than viewing money as something to be spent carelessly. According to a Fidelity Investments study, 82% of parents who teach their kids about money think it makes them more financially independent.
Teaching investment ideas through real-world examples, like keeping an eye on a stock portfolio, also encourages participation and hands-on learning. Future generations will require financial literacy to manage a changing economy as a result of developments in artificial intelligence, automation, and digital finance. According to experts, kids who comprehend investing will be more equipped for business, homeownership, and retirement.
With this in mind, let’s dive in and look at the best stocks to own for grandchildren.
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Our Methodology
For our methodology, we first used the Stock Analysis screener to filter stocks based on two criteria: dividend growth above 10% and total returns exceeding 500% over the past five years. From the resulting list, we selected the top 12 stocks. The final ranking was determined by the total number of hedge fund holdings as of Q2 2025, according to data from the Insider Monkey database.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Here is our list of the 12 best stocks to own for grandchildren.
12. Tecnoglass Inc. (NYSE:TGLS)
Number of Hedge Fund Holders: 21
Tecnoglass Inc. (NYSE:TGLS), a leading manufacturer of high-end aluminum and vinyl windows and architectural glass, continues to demonstrate strong financial performance and investor confidence as of September 2025. The company recently dismissed allegations by a short seller, calling the claims false and misleading, and reaffirmed its raised full-year 2025 financial guidance, signaling robust profitability and cash generation. Management also emphasized an active share repurchase program, reflecting confidence in the company’s undervalued fundamentals and growth potential. TGLS stands twelfth on our list among the best stocks to buy.
In September 2025, Tecnoglass Inc. (NYSE:TGLS) declared a quarterly dividend of $0.15 per share, or an annualized $0.60, payable on October 31 to shareholders of record as of September 30. This continued dividend policy underscores the business’s commitment to returning value to shareholders and sustaining long-term investor trust. TGLS also participated in the D.A. Davidson 24th Annual Diversified Industrials & Services Conference, highlighting ongoing engagement with investors and reinforcing its market presence.
Tecnoglass Inc. (NYSE:TGLS) serves multi-family, single-family, and commercial markets through a 5.8 million square-foot vertically integrated manufacturing complex in Barranquilla, Colombia. The corporation is the second-largest glass fabricator in the U.S. and the leading architectural glass transformation company in Latin America, generating 95% of revenue from the U.S. Its premium products are featured in high-profile projects like Salesforce Tower in San Francisco and One Thousand Museum in Miami.
11. Dillard’s, Inc. (NYSE:DDS)
Number of Hedge Fund Holders: 22
Dillard’s, Inc. (NYSE:DDS), a major U.S. retailer specializing in fashion, cosmetics, home furnishings, and accessories, reported steady Q2 2025 results, with net income of $72.8 million, or $4.66 per share, nearly matching last year’s performance. Total retail sales rose 1% to $1.447 billion, with comparable store sales also up 1%. Growth was strongest in juniors’, children’s apparel, and ladies’ accessories, while home and furniture sales remained weak. Gross margin slightly declined to 38.1% from 39.1%, and inventory management improved, increasing just 2% year-over-year. The company repurchased 24,500 shares for $9.8 million during the quarter, leaving $165.2 million in its ongoing buyback program.
Investor confidence has surged, with DDS’s stock reaching a 52-week high of $611.98 in September 2025, a year-to-date gain of 38%. The company maintains a quarterly dividend of $0.30 per share and ended the quarter with over $1 billion in cash, reducing long-term debt to $225.6 million, reflecting strong financial health.
Strategically, Dillard’s, Inc. (NYSE:DDS) focuses on store remodels, trend-driven merchandise, and expanding omni-channel capabilities. Partnerships, such as with Pandora Jewelry, have grown rapidly, now featuring 100 Pandora locations inside the corporation’s stores, enhancing product offerings and customer engagement.
10. Build-A-Bear Workshop, Inc. (NYSE:BBW)
Number of Hedge Fund Holders: 24
Build-A-Bear Workshop, Inc. (NYSE:BBW), a global retailer known for its interactive stuffed animal experiences, continues to demonstrate strong growth despite challenging retail conditions. In Q2 and the first half of fiscal 2025, the company reported revenues of $252.6 million, up 11.5% year-over-year, and pre-tax income of $34.9 million, a 31.5% increase. These results prompted an upward revision of its full-year pre-tax income guidance to $62–70 million, matching or slightly exceeding 2024 levels.
The company is expanding its footprint, reaching 627 stores in Q2 after adding 14 new locations, with a focus on international and partner-operated stores. This growth is complemented by digital initiatives and strategic partnerships that extend customer engagement beyond traditional malls, addressing traffic challenges in mature retail markets.
Amid macroeconomic pressures, including U.S. tariffs on goods from China and Vietnam, Build-A-Bear Workshop, Inc. (NYSE:BBW) has mitigated costs by sourcing materials directly and managing inventory proactively. Tariff impacts are expected to remain below $11 million in 2025, while the corporation limits price increases to maintain its value-driven, experience-focused offerings.
Build-A-Bear Workshop, Inc. (NYSE:BBW)’s experiential model, emphasis on customization, and planned-trip appeal continue to drive resilience in e-commerce and licensing channels, making it stand out among the best stocks to buy for investors seeking growth and stability. The firm also maintains shareholder value through ongoing share repurchases and a quarterly dividend of $0.22 per share, payable in October 2025.
9. IDT Corporation (NYSE:IDT)
Number of Hedge Fund Holders: 25
IDT Corporation (NYSE:IDT), a global provider of fintech and communications solutions, operates through key segments including National Retail Solutions (NRS), BOSS Money, and net2phone. The company continues to focus on expanding these platforms to drive steady growth in payments, cloud communications, and digital services.
In September 2025, IDT announced a quarterly cash dividend of $0.06 per share, payable on October 10, reflecting its commitment to returning value to shareholders and reinforcing confidence in its financial stability. The firm is also set to release its Q4 and full-year 2025 results on September 29, followed by a conference call to discuss strategic initiatives and operational performance.
Recent data from the NRS segment show a 3.5% year-over-year increase in same-store sales for June 2025, signaling continued traction in the retail and fintech space despite a slight slowdown from prior months. This performance highlights the effectiveness of IDT’s integrated solutions and its adaptability to evolving consumer trends.
Looking ahead, IDT Corporation (NYSE:IDT) anticipates reaching $1.3 billion in revenue and $104.9 million in earnings by 2028, driven by disciplined capital management and growth in core business segments. These developments position the business as a resilient player with potential long-term value for investors seeking stable, generational investment opportunities.
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