Investing in the Children's Market: Navigating Dividend Opportunities

Kelly Green explores the toy and children's products landscape for companies offering worthwhile dividends.

Mar. 28, 2026 at 3:03pm

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Kelly Green investigates the toy and children's products landscape, finding a mix of companies with suspended or reduced dividends, as well as some potential dividend-paying opportunities in the sector. While not finding a direct investment in the children's market, Green highlights how investors can gain exposure through large consumer staples companies with significant sales in the children's product segment.

Why it matters

The children's products market, including toys, apparel, and other goods, represents a significant and growing industry. Understanding the dividend landscape in this sector can help investors identify potential long-term holdings that provide both growth and income.

The details

Green's research uncovered a number of companies in the children's products space, such as The Children's Place, Disney, Mattel, and Carters, that have suspended or reduced their dividends in recent years. However, two stocks caught his attention as potential watch list additions: Hasbro and Newell Brands. While Hasbro generates a significant portion of its profits from gaming and digital ventures, Newell Brands owns a portfolio of well-known household brands like Rubbermaid, Sharpie, and Graco. Despite Newell's past acquisition challenges, Green sees potential in the company's turnaround efforts.

  • In 2025, the global kids apparel market was valued at $225.8 billion with a projected compound annual growth rate of 7.25% through 2034.
  • The global toys market is worth over $316 billion annually.

The players

Hasbro

The parent company of Nerf, Marvel, and Play-Doh. Its games division includes popular titles like Don't Break the Ice.

Newell Brands

The parent company of household brands such as Rubbermaid, Sharpie, Coleman, Yankee Candle, and Sunbeam. It also owns car seat and stroller brands Graco and Baby Jogger.

Target Corp.

A large retailer that reported strong sales growth in its toys segment and owns the in-house apparel brand Cat & Jack, which generates $3 billion in annual sales.

Kimberly-Clark

A giant in the diaper business with brands like Huggies, Pull-Ups, and Goodnites.

Kenvue

A consumer products company that will be acquired by Kimberly-Clark later this year, expanding its portfolio of children's and family products.

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What they’re saying

“Although I visit here and there, I always face a bit of a learning curve when I'm in town. My brother's house is the complete opposite of my minimalist approach.”

— Kelly Green

What’s next

In the future, Green hopes to see some of the companies that have suspended or reduced dividends in the children's products market restore those payouts as the industry continues to grow.

The takeaway

While Green did not find a direct investment opportunity in the children's products market, he identified ways for investors to gain exposure to this growing sector through large consumer staples companies with significant sales in children's goods and apparel.