If you’re a grandparent – or if you aspire to be a grandparent, at some point – one of the greatest gifts you can give the youngest members of your family is a background. solid financial foundation. While some of that may be an inheritance, it’s important to teach kids how grandma and grandpa do the same during their golden years. So don’t be afraid to tell them about investing and the magic of dividend stocks.
Dividend stocks are great long-term investments because in addition to quarterly returns, you also receive quarterly (or sometimes monthly) dividends. And as you rotate and reinvest those dividends directly into your stocks, your position grows consistently over time — and so does your portfolio.
Know what’s best Stock dividends to buy and holdAlong with understanding the magic of compounding, is the best way for your grandchild to build his or her portfolio and get started on the road to a comfortable life and retirement.
What better gift could one person give?
Here are some highly rated dividend stocks to buy for your grandkids and start their financial journey on the right track.
| CHRW | CH Robinson Global | $109.23 |
| CMC | Commercial metal company | $39.25 |
| COP | ConocoPhillips | $91.29 |
| KR | Kroger | $46.96 |
| OGE | OGE Energy | $40.70 |
| PAG | Penske Automobile Corporation | $117.26 |
| WLK | Westlake | $94.46 |
Dividend stock: CH Robinson Worldwide (CHRW)
Unless you’re hiding in a cave, you’re all too familiar with supply chains – the intricate global network of materials, workers, manufacturing, and shipping that allows you to sit on the couch in your room. customer and order a product from the other side of the globe. Supply chain problems have been a serious drag on production and profitability for some companies since Covid-19 fed its ugly head.
CH Robinson Global (NASDAQ:CHRW) brokers trucking and intermodal freight and connects manufacturers with air and ocean freight service providers.
While some companies are feeling severe pain from supply chain problems, CHRW is a big winner. The stock is up 13% since early February and is also outperforming the larger market year-to-date (YTD). Earnings for the second quarter beat analyst estimates, posting revenue of $6.8 billion and earnings per share (EPS) was $2.67, versus revenue expectations of $6.78 billion and EPS of $1.99.
On top of that, CHRW stock pays a 2% dividend, giving it an A on my Dividend Rankings.
Commercial Metal Company (CMC)
If you’ve ever wondered what happens to scrap metal when someone does it, well Commercial metal company (NYSE:CMC) is one possible answer. Texas-based company operating as largest producer rebar in North America and Central Europe. It helps make highways, bridges, sports stadiums and more – and uses 100% recycled steel.
CMC stock is up 8% so far this year, and its June fiscal third-quarter earnings report has kept the momentum going for the company. Earnings included revenue of $2.52 billion and EPS of $2.61 — much better than the $2.32 billion in revenue and $1.85 EPS that analysts had called for.
CMC pays a dividend of 1.4% and is also rated A in Dividend Rating.
ConocoPhillips (COP)
ConocoPhillips (NYSE:COP) may be best known as an oil depot, but it’s actually much more than that. The company splits production roughly equally between oil and natural gas. It has upstream, midstream and downstream operations, which means it has more control over its operating profit margin than other companies.
Energy production will continue to be a big driver of the economy no matter what happens with gas prices, natural gas supplies, and the associated conflict in Ukraine. Year-to-date COP reserves are up 27% due to higher gas prices.
First-quarter earnings were better than expectations, with revenue coming in at $19.29 billion and EPS of $3.27, compared with expectations for revenue of $18.36 billion and EPS of $3.22.
COP pays a dividend of 1.97% and has an A in my Dividend Class.
Dividend stock: Kroger (KR)
You can call right Kroger (NYSE:KR) stocks were a big disappointment ahead of the pandemic, as the Cincinnati-based grocery chain saw its shares rally around breakeven while major indexes rallied more than 20%.
And while Kroger has done a great job of turning the tide during the Covid-19 pandemic, inflationary pressures appear to be weighing on Kroger’s performance right now. KR stock is up 3.5% for the year — much better than the market — but that also includes a significant drop since April.
Kroger financial statements First quarter earnings of 2023 revenue of $44.6 billion and EPS of $1.45. This beat analysts’ estimates of $43.06 billion and EPS of $1.28. If you are looking for a quality dividend stocks to buy and hold (Kroger pays 2.2%), this grocery store could be a good bet. It is rated A in the Dividend Classification.
OGE Energy (OGE)
Electric utility company OGE Energy (NYSE:OGE) doesn’t have a big hit – it serves Oklahoma and Arkansas – but it’s a solid dividend option for your grandchildren.
Why? First, OGE is investing in clean energy like solar. And clean energy is important for future generations. It also pays a solid dividend of more than 4%.
The stock is up 5% so far in 2022, but that includes a 12% gain since mid-June. OGE stock has an A in Dividend Rating.
Penske Automotive Group (PAG)
A side effect of supply chain issues and the Covid-19 pandemic is the price squeeze on used car prices. The value of used cars has increased as a shortage of semiconductors and transportation problems make new cars more scarce, along with a reduced supply of used cars in the market. Americans are now keeping their vehicles for more than 12 years. That means when you go to the car park to buy a used car, you will have to pay a premium.
That goes well for auto stocks like Penske Automobile Corporation (NYSE:PAG). 7.07 billion dollars. But the $4.93 EPS is better than the Street estimate of $4.48.
PAG stock pays a dividend of 1.6% and has an A rating in the Dividend Rankings.
Dividend stock: Westlake (WLK)
Based in Houston Westlake (NYSE:WLK) plays an important role in production and supply petrochemicals, polymers and manufactured building products. The company has operations in Asia, Europe and North America, and contributes to the production of everything from the vinyl sheets in your home to the food packaging in your freezer.
The stock is down more than 2% year-to-date but presents a buying opportunity. In the spring of this year, WLK stock was up 44% year-over-year before falling again. This stock also pays a 1.2% dividend and has an A rating in the Dividend Rating.
Originally published on InvestorPlace. Read here.
Featured image credit: Photo by Josh Willink; Bark; Thank you!
