How to Invest in the Baby Boom

I originally had planned on titling this "How to Invest in the New American
Baby Boom" as I intended to focus purely on the echo boomers and their young
families, but I decided there still is a little money to be made off of the
original baby boomers. Yes, baby boomers are fast approaching retirement and are
more interested in saving than spending. But, by virtue of their sheer size and
accumulated wealth, they still are a force to be reckoned with. The key is
finding the goods and services they still need and want. Heres a few ways to
play both the baby boomers and the New American Baby Boom. Baby Boomers
Ancestry.com (NASDAQ: ACOM ) is a fine example. As they ponder their legacy to
their children and grandchildren, Boomers are more interested than ever in their
family histories. And Ancestry.com is in a unique position to satisfy that
curiosity. Although the stock ended the year down almost 19%, I believe ACOM
could be one of my best performers in 2012. Almost Family (NASDAQ: AFAM ) is
another stock I see doing well, though Im still waiting to pull the trigger and
buy it. Home health services should see years of increased demand as the elderly
population of the country expands in the coming years. New American Baby Boom My
two 2011 investments in children's toys have had very mixed results. Mattel
(NYSE: MAT ) had a great year, ending the year up roughly 20% (including
dividends) since my January recommendation. Hasbro (NYSE: HAS ) had a rougher go
at it, falling more than 32% and erasing the gains I had in the stock from 2010.
Despite their vastly different performances in 2011, I continue to like both
stocks. Both are excellent ways to profit from the New American Baby Boom that
peaked in 2008. All of the babies born in the mid-to-late 2000s and those were
record birth years, I might add are now toddlers and young children with an
insatiable appetite for toys. This trend still has a few years left in it, and
both Hasbro and Mattel are attractively priced and pay more than 3% in
dividends. I recommend both for 2012. Lastly, whats a new generation without
diapers? After a slow start, Huggies diaper maker Kimberly-Clark (NYSE: KMB )
ended up having a great 2011. The stock was up nearly 17% including dividends.
KMB benefited from an investor flight to safety. As a boring, stable maker of
disposable consumer staples, KMB was exactly what investors needed. Though this
stock is far from sexy, I recommend investors hold onto it a little longer and
continue milking that 3.8% dividend. Charles Lewis Sizemore, CFA, is the editor
of the Sizemore Investment Letter, and the chief investment officer of
investments firm Sizemore Capital Management. Sign up for a FREE copy of his new
special report : "Top 5 Contrarian Stocks for 2012."