Millennial Trio

10/27/2015 9:00 am EST


Jim Powell

Principal Analyst, Global Changes & Opportunities

One demographic group that offers excellent investment opportunities and is being largely overlooked is America’s 83.1 million Millennials, notes Jim Powell, editor of Global Changes & Opportunities Report.

While millions of Millennials earn much less than their parents, they do have definite consumer preferences and they are spending a great deal of money on them.

I think you should consider having at least one top Millennial stock in your portfolio.

Two leading Millennials are Apple (AAPL) and Equity Residential (EQR), both of which continue to have excellent long-term outlooks.

Apple is having another good year. Orders for the new iPhone 6 are making records and iWatch sales are gaining momentum.

More innovative products are also on the way, including an exciting all-electric car to be introduced in 2019.

Nevertheless, Apple is undervalued and remains very attractive. As with most tech companies, Apple is plowing most of its earnings into product development instead of its yield, which is a modest 1.81%. Investors should buy Apple for its potential growth rather than income.

Equity Residential is also doing well providing Millennials with upscale apartments in cities with healthy economies and good employment opportunities.

Earnings are expected to grow 8% this year and that’s a conservative estimate. The yield is an attractive 3.10%. Equity Residential looks good for both growth and income.

Less well known—but also attractive—is Constellation Brands (STZ), a company that produces many of the more flavorful and authentic wines, spirits, and beers that the Millennials prefer.

The beer lineup includes Corona, Pacifico, Modelo, and Victoria. Wines include Robert Mondavi, Ruffino, and Kim Crawford.

The company also markets SVEDKA Vodka, Casa Noble Tequila, and Paul Masson Brandy. Constellation has operations in the US, Canada, Mexico, New Zealand, and Italy.

Constellation is prospering and the company is particularly adept at marketing its products to Millennials.

Earnings were up again in the last quarter and the company declared its first dividend. Investors are clearly becoming interested in the stock.

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