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jubs08:

Q: Whose money is it now?
A: My money.
So it will be a gift. You will need to be aware of Annual Gift Tax exclusions amount ($14,000 for 2014) and track all gifts.

Q: Why do you want to open it in your daughter's name?
A: I believe due to tax related, if my information so far is correct they get taxed less.
You will need to be aware of, and monitor changes in the kiddie tax rules. See: http://www.irs.gov/taxtopics/tc553.html You will also want to be aware oo age of majority rule for your state and possible the effect of child's assets on EFC (Expected Family Contribution) calcuations for college.

Q: If it is your money, are you making a gift?
A: I believe i will be making a gift.

Q: In what do you want to invest?
A: Looking into invest on stocks that pays out dividends.

"I also would like to know if there is a way i can withdraw when they decide to buy a home or invest in a business."

It is a gift; it is not your money any more. By the time the child is old enough to buy a home or invest in a business that he/she will run (I would suggest that buying stock is investing in a business, but doubt that is what you mean), the child will likely have passed the age of majority and it is the child's money and the child's decision to withdraw (or not withdraw) for whatever reason (including, wine, [wo]men, and song, or fast car or other toys).

Regards, JAFO
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