It’s not just Kate Middleton and Prince William having a baby these days. There are a lot of new parents and parents-to-be out there. There are 4 million babies born in this country every year. Moms and dads may have the basic essentials covered, but financial planning for newborns is probably not a priority.
Wouldn’t it be great to assemble portfolios for newborns that will grow alongside them? Wouldn’t it be great if these stocks were also relevant to newborns and toddlers?
Let’s single out a few companies that every parent should consider owning.
1. The Procter & Gamble Company (NYSE:PG)
The two best-known diaper brands are owned by two publicly traded companies. Kimberly Clark Corp (NYSE:KMB) makes Huggies, and The Procter & Gamble Company (NYSE:PG) is the consumer-goods conglomerate behind Pampers, the world’s best-selling diaper brand.
The Procter & Gamble Company (NYSE:PG) also puts out the value-minded Luvs line of diapers, and it even gets in on the newborn laundry game with its Dreft detergent that’s specially formulated to be gentle on a baby’s skin.
2. Abbott Laboratories (NYSE:ABT)
Babies have to eat, and mother’s milk isn’t always an option. There are plenty of big companies in the baby formula market. Mead Johnson Nutrition CO (NYSE:MJN) is a major player with Enfamil, but Abbott Laboratories (NYSE:ABT) is no slouch with Similac. Abbott Laboratories (NYSE:ABT) is also the company behind the electrolyte-restoring Pedialyte and the flavored drinks and shakes of PediaSure.
Abbott Laboratories (NYSE:ABT) pays out a quarterly dividend that adds up to a yield of 1.6%. Sure, that’s a lot lower than The Procter & Gamble Company (NYSE:PG) at 3%, but this is the kind of pocket change that adds up over the years.
3. Bright Horizons Family Solutions Inc (NYSE:BFAM)
Bright Horizons Family Solutions Inc (NYSE:BFAM) doesn’t offer a dividend the way that most of the other companies on this list do, but it does offer healthy double-digit percentage growth. The child-care giant saw revenue climb 10% higher last year, and it’s targeting 10% to 13% in revenue growth this year.