Brand new data from TD Ameritrade has revealed the most popular stocks among the youngest generation of American retail investors. The firm sorted through the holdings of all of its millennial-aged clients born since 1981 to identify the companies that young investors see as the best long-term investments. Surprisingly, millennials’ taste in stocks hasn’t changed much since TD Ameritrade conducted a similar study two years ago.
TD Ameritrade chief strategist JJ Kinahan says there is a key theme among all ages of retail clients.
“The data points to a primary characteristic of investors—they are inclined to invest in companies that they have a general understanding of, which are perceived by investors as good companies,” Kinahan says.
Here’s a look millennials’ to 10 favorite stocks.
- Exxon Mobil Corporation
Blue chip fossil fuel giants may not be the first thing that comes to mind when you think about the young generation of Americans. However, Exxon Mobil Corporation (XOM) has maintained its number 10 spot on the list of most popular millennial stocks. Perhaps millennials see the underperformance of oil stocks in recent years as a long-term buying opportunity, or maybe they appreciate Exxon’s generous 3.7 percent dividend yield. Regardless of the reason, popular tech stocks such as Alphabet Inc (GOOG, GOOGL) are surprisingly not among millennials’ top ten stock investments, but Exxon once again is.
- General Electric
General Electric Company (GE) is another surprising favorite among millennial investors. GE is the longest-tenured member of the Dow Jones Industrial Average and has long been considered one of the bellwethers of the U.S. economy. Millennials likely appreciate many of the same traits in GE that they appreciate in Exxon, including reliability, durability and GE’s 3.4 percent dividend yield. In the past several years, GE has made a number of moves to position itself as a potential leader in the Internet of Things era of U.S. industry, a long-term transition that younger investors hope will pay off for years to come.
- Walt Disney
Walt Disney Co (DIS) dropped from sixth place on the top millennials stock list in 2015 to eighth place in 2017, but younger investors still see Mickey Mouse as a cash cow. Despite increasing concerns over cord-cutting eating into ESPN subscriptions and the rest of Disney’s cable TV business, millennials are confident that the company can overcome the challenges and continue to serve as a cornerstone of a long-term investing portfolio. There’s certainly no denying the enduring power of Disney’s brands. Millennials are familiar with Disney’s products and services and likely appreciate its long-term track record of success.
- Microsoft Corporation
Microsoft Corporation (MSFT) has gained popularity among millennials in the past two years, rising one spot from number eight to number seven on the list. The company has made huge strides in building its cloud computing division and making Azure one of the top brands in the massive, high-growth cloud services business. Last year, Microsoft also opted to use some of its cash hoard to make a huge splash in the social media space by acquiring professional networking platform LinkedIn. Microsoft pays a 2.2 percent dividend and has plenty of long-term growth opportunities in machine learning and artificial intelligence as well.
Tesla Inc (TSLA) is yet another stock that has gained popularity among millennial investors in the past two years. Young investors have high hopes for the company’s Model 3 mass market electric car, which is expected to be delivered by the end of 2017. Tesla is also among the industry leaders in autonomous vehicle development and is a leader in cutting-edge solar power and energy storage technology as well. CEO Elon Musk anticipates the company will produce 500,000 vehicles by 2018, making Tesla a serious threat to the established auto industry.
- Bank of America
Bank of America Corp (BAC) has…
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