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The 7 Best Dividend Stocks to Buy for Your Grandkids



The 7 Best Dividend Stocks to Buy for Your Grandkids

If you’re a grandparent — or if you aspire to be one, at some point — one of the best gifts you can give your youngest family members is a firm financial foundation. While part of that could be an inheritance, it’s also important to teach the little tykes how grandma and grandpa managed to do so well in their golden years. So, don’t be afraid to introduce them to investing and the magic of dividend stocks.

Dividend stocks are great long-term investments because in addition to your quarterly return, you also get a quarterly (or sometimes, a monthly) dividend. And when you turn around and reinvest those dividends directly into your stock, your position grows consistently over time — and so does your investment portfolio.

Knowing the best dividend stocks to buy and hold, coupled with understanding the magic of compounding interest, is the best way for your grandkids to build their portfolios and start on the path to a comfortable life and retirement.

What better gift can one give?

Here are some highly rated dividend stocks to buy for your grandkids and start their financial journey on the right foot.

CHRW C.H. Robinson Worldwide $109.23
CMC Commercial Metals Company $39.25
COP ConocoPhillips $91.29
KR Kroger $46.96
OGE OGE Energy $40.70
PAG Penske Automotive Group $117.26
WLK Westlake $94.46

Dividend Stocks: C.H. Robinson Worldwide (CHRW)

Unless you’ve been hiding in a cave, you’re all too familiar with the supply chain — the complex global network of materials, workers, manufacturing and shipping that lets you sit on your living room couch and order a product from halfway across the globe. Supply chain issues have been a serious drag on manufacturing and some companies’ profits since Covid-19 reared its ugly head.

C.H. Robinson Worldwide (NASDAQ:CHRW) brokers truckload and intermodal freight transport and connects manufacturers with air and ocean freight service providers.

While some companies are feeling serious pain from the supply chain issue, CHRW is a big winner. The stock is up 13% from early February and is also outperforming the greater market on a year-to-date (YTD) basis. Earnings for the second quarter beat analysts estimates, coming in with revenue of $6.8 billion and earnings per share (EPS) of $2.67, versus expectations of $6.78 billion in revenue and EPS of $1.99.

On top of that, CHRW stock pays a dividend of 2%, helping it get an A grade in my Dividend Grader.

Commercial Metals Company (CMC)

If you ever wondered what happens to scrap metal when someone’s done with it, then Commercial Metals Company (NYSE:CMC) is a possible answer. The Texas-based company operates as the largest manufacturer of rebar in North America and central Europe. It helps make highways, bridges, sports stadiums and more — and uses 100% recycled steel.

CMC stock is up 8% so far this year, and its fiscal third-quarter earnings reported in June kept the company’s momentum. Earnings included revenue of $2.52 billion and EPS of $2.61 — far better than the $2.32 billion revenue and $1.85 EPS that analysts had called for.

CMC pays a dividend of 1.4% and also has an A rating in the Dividend Grader.

ConocoPhillips (COP)

ConocoPhillips (NYSE:COP) may be best-known as an oil stock, but it’s really more than that. The company splits its production nearly equally between oil and natural gas. It has upstream, midstream and downstream operations, meaning it has more control over its operating margins than other companies.

Energy production will continue to be a big driver of the economy no matter what happens with gas prices, natural gas supplies and the related conflict in Ukraine. COP stock is up 27% so far this year as gas prices have moved higher.

Earnings for the first quarter were above expectations, with revenue coming in at $19.29 billion and EPS of $3.27, versus expectations of $18.36 billion in revenue and $3.22 EPS.

COP pays a dividend of 1.97% and has an A grade in my Dividend Grader.

Dividend Stocks: Kroger (KR)

You could rightly call Kroger (NYSE:KR) stock a huge pre-pandemic disappointment, as the Cincinnati-based grocery-store chain saw its stock bounce around the breakeven point while major indices surged more than 20%.

And while Kroger did a great job of turning things around during the Covid-19 pandemic, inflationary pressure seems to be weighing on Kroger’s performance now. KR stock is up by 3.5% on the year — much better than the market — but that also includes a significant drop since April.

Kroger reported fiscal Q1 2023 earnings of $44.6 billion in revenue and EPS of $1.45. That beat analysts’ estimates of $43.06 billion and EPS of $1.28. If you’re looking for a quality dividend stock to buy and hold (Kroger pays 2.2%), then this grocer may be a good bet. It gets an A rating in the Dividend Grader.

OGE Energy (OGE)

Electric utility company OGE Energy (NYSE:OGE) doesn’t have a huge footprint — it serves Oklahoma and Arkansas — but it’s a solid dividend pick for your grandkids.

Why? For one, OGE is investing in clean energy like solar. And clean energy will be important for future generations. It also pays a solid dividend of more than 4%.

The stock is up 5% so far in 2022, but that includes a 12% bump since mid-June. OGE stock has an A rating in the Dividend Grader.

Penske Automotive Group (PAG)

One side effect of the supply chain issue and the Covid-19 pandemic has been a squeeze in used-car prices. The value of used vehicles has gone up because of a shortage of semiconductors and shipping issues that make new cars scarcer, coupled with a reduced supply of used cars on the market. Americans are now keeping their vehicles for more than 12 years. That means when you go to the car lot to buy a used car, you’re going to be paying a premium.

That’s worked out well for automotive stocks such as Penske Automotive Group (NYSE:PAG), which is up 3% so far on the year and by 19% since early April. Second-quarter earnings were a mixed bag, with revenue of $6.91 billion missing analysts’ estimates of $7.07 billion. But EPS of $4.93 was better than the Street’s estimate of $4.48.

PAG stock pays a dividend of 1.6% and has an A rating in the Dividend Grader.

Dividend Stocks: Westlake (WLK)

Houston-based Westlake (NYSE:WLK) plays an important role in manufacturing and supplying petrochemical, polymers and fabricated building products. The company has operations in Asia, Europe and North America, and contributes to the manufacturing of everything from the vinyl siding on your home to the food packaging in your freezer.

The stock is down more than 2% YTD but represents a buying opportunity. This spring, WLK stock was up 44% on the year before pulling back. The stock also pays a dividend of 1.2% and has an A rating in the Dividend Grader.

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Featured Image Credit: Photo by Josh Willink; Pexels; Thank you!


Fintech Kennek raises $12.5M seed round to digitize lending



Google eyed for $2 billion Anthropic deal after major Amazon play

London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Fortune 500’s race for generative AI breakthroughs



Deanna Ritchie

As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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UK seizes web3 opportunity simplifying crypto regulations



Deanna Ritchie

As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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