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.
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 .
MAT Total Return Price data by YCharts
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.
Source: Mattel.com.
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.
Source: Jaguar.com.
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.
PPL Corporation (NYSE:PPL) data by YCharts
Its U.K. regulated division pulled in more than half of the company’s Q1 profits, and PP&L’s newly submitted eight-year plan is designed to keep the company pulling profits well into the future.
Fit for a king?
The newest addition to the royal family has a long life ahead of him, but it’s never too early to start planning for a profitable future. Make your smart stock picks today, and you’ll be well on your way to a royal retirement.
The article 3 Stocks for a Royal Baby Boy originally appeared on Fool.com.
Fool contributor Justin Loiseau has no position in any stocks mentioned. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo The Motley Fool recommends Ford and Mattel and owns shares of Ford.
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