3 Stocks That Could Help You Send Your Kids to College

The average cost of tuition and fees for private colleges this year is $34,740, while the cost of tuition tends to rise about 8% annually. That means the price of a college education doubles every nine years. Can you think of a better reason to invest?

The Tesla we know today collects 89% of its quarterly sales from electric vehicles. Solar panels, large-scale battery packs, and services for all of the aforementioned products added up to 11% of the third quarter’s $6.8 billion top line. Ramping up the production volume of the relatively affordable Tesla Model 3 car is next on the agenda, positioning the company to grow its cash flows and start showing positive bottom-line earnings. Upcoming big-rig trucks should help Tesla stick to those goals for the next few years.

It’s true that Tesla already sports a $54 billion market cap and annual revenue in the $14 billion range. But that’s peanuts compared with today’s leading oil producers, many of whom boast sales 10 or 20 times Tesla’s annual sales, as well as far larger market caps.

So Tesla’s stock should be quite capable of helping you send the kids to college in a decade or two. Beyond that, the grandkids might find their favorite school under water if Tesla’s vision fails.

Better yet, management expects this solid growth to continue even after the impact of the tax cuts is in the rearview mirror. In a press release, CEO Donald Slager predicted “strong top-line growth” in 2019, as well as double-digit growth in earnings and free cash flow per share. In spite of all this projected growth, the market — still reeling from its recent correction — yawned at the news.

But with shares down more than 7% over the past month, and with a dividend that’s currently yielding more than 2%, now may be an excellent time to pick up shares of this strong company with a solid business model.

When it comes to its dividend, which currently yields a sturdy 2.1%, it has paid shareholders for over 40 years and has raised the dividend every year. Better still, with only 34% of its free cash flow going for dividends, Walmart has a large safety net to continue raising the payout.

The retailer isn’t a bargain-basement stock, but trading at 17 times its free cash flow, it is appropriately valued, which makes it suitable for a stock you’re going to be putting away for some time while receiving dividend payments that you’ll use to help your child get that sheepskin.

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