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Why not just stick with index funds? That could oepn the discussion later about keeping costs low and diversification.

Because with children, if you want them to be interested in investing and stocks, it is more likely they will be interested in some company that they know. An index fund does not fit the bill for this if the OP plans to use the stock to interest the child in investing and as a teaching tool.

My kids actually have ExxonMobil in their accounts because it was a stock that they know. They had McDonald's when they were toddlers til they wanted to sell it. My intent with that money was to teach them about finances. It wasn't intended to be a huge pile to pay for college or anything like that.

I think it depends what the OP wants to do, but I got the impression that the OP intended to use the stock as a teaching tool, so making the stock interesting helps with that.
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