An 8-pound, 6-ounce package captured the world’s attention this week. Prince George Alexander Louis, the newest heir to the British throne, arrived Monday at St. Mary’s Hospital, London. With a net worth measured in the tens of billions, this baby boy could use some stock picks to keep his empire pulling profits. Here are three stock ideas for the prince’s portfolio.
1. Boy toy
Royal or not, every boy needs a toy. Mattel, Inc. (NASDAQ:MAT) is a worldwide leader in the toymaking business, and its operations have pulled in major profit for investors over the past few years. Since our Motley Fool Income Investor newsletter recommended the company in August 2011, shares have bounded up 93%, 38% more than the S&P 500‘s remarkable 54.8% total return. In the past ten years, Mattel has managed a whopping 200% gain, versus the S&P 500’s 108% rise .
While George might not go bananas for Barbie or American Girl, he can hop on board with Hot Wheels and Fisher-Price, as well as licenses for Thomas & Friends, Toy Story, and Cars.
Naysayers (understandably) point to the demise of physical toys, but Mattel, Inc. (NASDAQ:MAT) has made its mark with strategic partnerships such as an Angry Bird board game. If Mattel can adapt to the changing child-entertainment world, its 3.3% dividend yield will keep George in golden diapers for plenty of years past potty-training.
2. Gimme those car keys
Sniff … they grow up so fast. Before we know it, little Georgie’s going to be ready to sit his royal tuckus in the driver seat. Tata Motors Limited (ADR) (NYSE:TTM) offers a flashback to the days of British colonialism, although this time it’s India with the ownership. Although the South Asian automaker is most famous for its Tata Nano, the world’s cheapest car, Prince George would probably have his eyes set on Tata’s Jaguar Land Rover subsidiary.
The company bought the failing British business from Ford Motor Company (NYSE:F) in 2008 for a paltry $2.3 billion, and sales have skyrocketed ever since. It’s now Tata Motors Limited (ADR) (NYSE:TTM)’s most profitable entity, and it has enjoyed major sales growth in Asia. With its new entry into the Australian market, this might be George’s best ticket to reliving the British Empire’s heyday.
3. Power to the people
If the current royal regime is any evidence, George is going to be around for a long time to come. Although it’s not as fun as a toy or as fast as a car, the prince needs to consider long-term income earners as well. British-American utility PPL Corporation (NYSE:PPL) puts electricity in the homes of his subjects, while offering a delectable 4.7% dividend on the side. With share prices still wobbling around recession-level lows, you and George could benefit from a long-term value grab as economies (eventually) pick up in the years to come.