We all know the drill on Christmas. Hop on Amazon.com, Inc. AMZN or Walmart WMT, or Target TGT, hunting for the perfect gift—maybe even snagging a great deal.
But let's be honest: those gifts often end up forgotten or out of use, no matter how thoughtful.
Ever considered gifting Christmas stocks? Your family and friends may come to appreciate such a gift in time. Here's Why.
Why Gift Stocks
Stocks are an opportunity because they offer financial growth. They can offer financial growth, spark interest in investing, and teach valuable lessons about the stock market. Giving shares in retail giants like Walmart, Amazon, or Target doesn't just say, "I care about you today." It says, "I care about your future."
See Also: Your Christmas Roadmap to the Market’s Most Hidden Profits
Why Walmart, Amazon, And Target
Amazon: The company offers exposure to e-commerce, cloud computing, and even AI advancements. It currently has a market capitalization of $2.366 trillion, making it the fifth most valuable company in the world. Year-to-date Amazon shares have grown by 50.11%, significantly outperforming NASDAQ-100 which is at 29.98% during the same period, according to data from Benzinga Pro.
Walmart: A leader in physical retail and rapidly expanding in e-commerce, Walmart remains a robust choice for long-term investors. The company currently stands at number 12 on the list of the world's most valuable companies with a market cap of $725.81 billion. Walmart shares have climbed 70.15% so far this year.
Target: Known for its loyal customer base and successful private-label brands, Target is a solid bet in the retail space. Target currently holds a market value of $60.44 billion, ranking as the 324th most valuable company globally by market cap. While its shares are down 7.81% year-to-date, they have increased by 2.1% over the past five years.
Things To Keep In Mind While Gifting Stocks
Understand The Tax Implications: Gifting stocks comes with tax rules that are important to understand. The IRS allows tax-free gifts of up to $15,000 annually for each recipient ($30,000 for married couples), with amounts over this limit potentially subject to taxes.
Gifting Stocks To Minors: For minors, you'll need to set up a custodial account, such as a UTMA or UGMA account. Once the account is set up, stocks can be transferred directly. The gift becomes the child's property and cannot be reclaimed.
Virtual Transfers Between Brokerage Accounts: You'll need their account details and personal information to initiate the transfer through your brokerage platform. If they don't have an account, some platforms let you gift stock via digital gift cards they can redeem for shares.
Remember that stock values can fluctuate, and past performance doesn’t guarantee future returns. However, the financial lessons learned from owning and monitoring these investments can be invaluable, regardless of market performance.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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