5 Best Stocks to Buy for Your Child

4. Apple Inc. (NASDAQ: AAPL)

Number of Hedge Fund Holders: 127

Ranking 4th on the list of 10 best stocks to buy for your child is Apple Inc. (NASDAQ: AAPL). On Aug. 2, 2018, the California-based tech corporation made history by becoming the first public company in the United States to reach a market capitalization of $1 trillion. Today, AAPL’s market cap is over $2.1 trillion. The company manufactures and sells iPhones, iPads, Macs, and wearables worldwide. After a 17-year break, Apple reinstated its dividend in 2012, and it has since become a dividend giant. AAPL currently pays a quarterly dividend of $0.22 per share. 

AAPL stock has offered more than 51% returns to investors in the past twelve months. The company’s second-quarter revenue increased 54% to $89.5 billion, up from $58.3 billion in the same period in 2020. Apple Inc.’s iPhone sales in the second quarter of 2021 totaled $48 billion. Currently, 27 analysts posted a Buy rating on Apple Inc., with an average price target of $157.10 per share. AAPL currently trades at $125.90 per share.

There were 127 hedge funds that reported owning stakes in Apple Inc. (NASDAQ: AAPL) at the end of the first quarter, down from 146 funds a quarter earlier. The total value of these stakes at the end of Q1 is $131 billion.

In its Q1 2021 investor letter, Distillate Capital, an investment management firm, highlighted a few stocks and Apple Inc. (NASDAQ: AAPL) was one of them. Here is what the fund said:

“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”