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10 Stock Investments for College Students
Posted on | September 14, 2012 | Comments Off
Although most college students never think about starting a retirement plan while still in school, there are some who know that, if they have the extra cash, it’s a wise decision to get started sooner than later. Even though most people don’t open a retirement account or invest in the stock market until they have settled into a career, there is no rule that says you can’t start saving before you get your diploma.
In fact, investing in the stock market as a college student may be one of the smartest things you can do. The job market has still not recovered from the recession, so many college graduates are having a tough time getting their careers started and finding funds for retirement savings. If you have the extra money while in college, it may be a good idea for you to start building income for retirement while you can. Forego the money you would have spent on beer and purchase as many shares as possible of the following good quality stocks, which will likely raise annual dividends over time.
- ATR- AptarGroup, Inc., current stock price at 51.19 with an estimated three to five year annual dividend growth of 8%
- BRO- Brown & Brown, Inc., current stock price at 26.29 with an estimated three to five year annual dividend growth of 5%
- EMR- Emerson Electric Company, current stock price at 49.42 with an estimated three to five year annual dividend growth of 6%
- GIS- General Mills, Inc., current stock price at 39.29 with an estimated three to five year annual dividend growth of 6%
- JCI- Johnson Controls, Inc., current stock price at 28.14 with an estimated three to five year annual dividend growth of 7%
- MSFT- Microsoft Corporation, current stock price at 30.79 with an estimated three to five year annual dividend growth of 7%
- OMI- Owens and Minor, Inc., current stock price at 28.60 with an estimated three to five year annual dividend growth of 6%
- PSX- Phillips 66, current stock price at 45.59 with an estimated three to five year annual dividend growth of 5%
- SYY- Sysco Corporation, current stock price at 30.46 with an estimated three to five year annual dividend growth of 5%
- WEC- Wisconsin Energy Corp, current stock price at 37.87 with an estimated three to five year annual dividend growth of 6%
If you have secured financial aid for tuition, room and board, you should be able sacrifice any monetary gifts you received for graduation to open up a trading portfolio with an online site like ETrade.com. A good minimum amount to start purchasing stocks with is $1,000, though more money will allow you to purchase more shares of various stocks, making you more money, in the long run. If you plan on working during college, use a fraction of each paycheck to purchase more shares of stocks, when they are at a good price. Before purchasing shares, be sure to do your own research on each company you are interested in investing in.
Note to Reader: The above companies are listed on the Wells Fargo Advisors’ most current Diversified Stock Income Plan list. They have been subjectively chosen for their attractive current yields and related company fundamentals. There is no guarantee of profit or protection against loss.
Barbara Jolie enjoys spreading the news about the importance of education and proper career training. As a regular contributor to several educational resource sites, such as www.OnlineClasses.org, she writes about everything from recent trends in teaching to student life. Feel free to reach out to her at [email protected].