The Procter & Gamble Company (PG), The Walt Disney Company (DIS) & Kellogg Company (K): Should Your Kids Buy These?

DRIPs at the breakfast table

Another great American brand that kids can relate to is the Kellogg Company (NYSE:K). From Frosted Flakes to Pop Tarts and Pringles, it is very likely (although not exactly healthy) that your child or teen’s diet is chock full of Kellogg Company (NYSE:K) brand foods.

Kellogg Company (NYSE:K) is worthy of any portfolio, due to its long history of solid earnings and its valued reputation among consumers. Kellogg’s DRIP excels due to its very low initial investment of just $50 and just $25 optional investment. At such a low barrier to entry, almost anyone can get in the game. And with a 2.7% yield, shares will grow with your kids.

Running a quick scenario, we can see how quickly investing in a DRIP such as Kellogg Company (NYSE:K)’s really adds up. If an investor had made a $50 initial DRIP investment fifteen years ago, and $25 monthly investments, he or she would have spent $4,525 accumulated over 186 shares of Kellogg Company (NYSE:K)’s stock through the program, worth over $12,000 today. Not bad for the cost of a few boxes of cereal per month.

Do your research and get in the game

Any of these DRIPs, or a combination of the three, would be a great way to accumulate shares while getting younger ones started in investing. Or, take a look at the label on your children’s favorite toy, bike, or video game to see if the manufacturer has a DRIP of its own.

Just make sure to do your research.  Each DRIP has its own fees and associated costs, many of which can eat into potential gains. One of the goals of DRIP investing is to avoid high brokerage fees, so it would be wise to choose a plan with low costs.

Either way, socking kids’ money away in a DRIP is more educational and potentially more profitable than keeping cash in the piggy bank.

The article 3 DRIPs to Buy for Your Kids originally appeared on Fool.com.

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