We traditionally select stocks at the end of the summer, before the beneficiaries go back to school or off to college (or even graduate school). This allows the a chance to earn money over the summer because the equation is 1) trustee contributes $500 2) beneficiary contributes up to $500 3) trustee matches up to $500. The matching concept has worked well at aligning interest in these investments because it is “their” money, too.
SIX STOCKS FOR 2012
1. Facebook (FB) – oversold, still has enormous momentum long term
2. Royal Dutch Shell (RDS.B) strong dividend (5.4%), good cost control, focus on liquid to oil. No foreign withholding on “B” ADR shares because they are out of the UK which has zero withholding (this is a UK ADR)
3. Metro PCS (PCS) – plays on no prepaid plan smartphones, buyout candidate (right size)
4. P&G (PG) – great consumer products company, being shaken up, good dividend (3.3%)
5. Toronto Dominion Bank (TD) – top North American (US and Canada) bank in terms of safety, dividend of (3.4%), good financial performance (this is a Canadian ADR)
6. Sasol (SSL) 4.51% – can play Africa growth and also gas to fuel synthetic gap to leverage low gas prices (this is a South African ADR)