The 2024 holiday gift guide: Stocks that will appeal to gamers, vacationers and even those who just want some cash

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There is the temptation this time of year to berate ourselves over failing – again – to complete our holiday gift-giving well before those panic-buying instincts kick in.

Our advice: Put down that artisanal bottle of vinegar and just eat those homemade rum balls already. Instead, give the gifts that truly nourish and enrich … the pocketbook.

That’s right, welcome to The Globe and Mail holiday gift guide: stock edition, where you’ll find ideas for all your friends, colleagues and loved ones. Our theme? The stocks are better than the stuff. Let us explain.

For the beach-dreaming spouse: Air Canada

This time of year, the soul craves a warm place with sand, crashing waves and margaritas. So perhaps it’s time to splurge on the stock of an airline that will whisk away those sun-starved vacationers, leaving your loved one holding a packed bag of profits.

Air Canada AC-T fits the bill. The stock is well above its summertime lows, when investors were worried about high interest rates, labour unrest and rising costs, but also off its recent highs. There are several reasons to expect a rebound will resume.

Rates are coming down fast, which should encourage spending. The airline is back in the business of buying its own shares, which should drive earnings per share higher. And if its most recent quarterly earnings results are any indication, Air Canada can provide pleasant surprises, like beating analyst estimates.

Sure, the federal government recently sold its shares in the airline. But is Ottawa the sophisticated investor you want to follow?

Just be sure to watch your loved-one’s eyes light up when they open this gift. At the first sight of the Air Canada logo, they’ll know they’re going places.

For the high-schooler who insists on an iPhone upgrade: Apple Inc.

Are the kids pleading for iPhone upgrades this year? Then give them the stock that upgrades automatically.

Apple AAPL-Q released its iPhone 16 in September, with a better camera, faster processors and longer battery life. But the biggest difference between this new version and the older iterations is the introduction of Apple Intelligence – a suite of AI features that can refine searches, transcribe calls and assist with writing and proofreading text.

“With the introduction of Apple Intelligence, we’re beginning a new era for iPhone,” Tim Cook, chief executive officer at Apple, said on a call with analysts at the end of October.

The company’s fiscal first-quarter financial results, due in about a month, will provide some insight into how sales of the new iPhone are going. Though some initial sales indications suggested consumers were slow to embrace the new model upon its release, the holiday season will provide a better snapshot of the potential here.

Dan Ives, an analyst at Wedbush securities, estimates there about 300 million iPhones in existence that will need upgrading – leading to a “renaissance of growth” at Apple over the next 12 to 18 months.

The best part about this gift: It doesn’t come with TikTok.

For the tween relation who wants cash: Fortis Inc.

Expect some initial pushback on this one. “I wanted some money to spend at the mall and all I get is … what’s Fartis?”

First, explain that Fortis FTS-T is a large and diversified utility with operations in Canada, the United States and three Caribbean countries.

Second, point out that the company has raised its dividend for 51 consecutive years, which is a sure sign of financial stability through good times and bad. The payout has nearly doubled over the past decade. If this pace continues, and you hold the stock into your early 20s, you can expect that the 61.5 cents a share that you’re getting – each quarter – will increase to $1.23.

Is your tween now pouting over the stock’s dividend yield of 4.1 per cent?

Fair point. The yield was 4.6 per cent earlier this year, when the Bank of Canada’s key interest rate sat at multiyear highs. As the central bank cut rates, dividend-paying stocks began to look more attractive. In the case of Fortis, the share price has rallied about 18 per cent since April.

But consider the upside here: The yield is compelling, the payout is rising and the share price is off its recent highs as investors reconsider the long-term path of interest rates. Does your tween still want cash? We doubt it.

For the gamer: Take-Two Interactive Software Inc.

This gift speaks for itself. TTWO brings GTA VI.

The translation? Take-Two TTWO-Q is a huge video game developer that is expected to release the latest edition of its blockbuster Grand Theft Auto franchise – the sixth instalment – next year. In addition, the company has a robust pipeline of other game titles that could drive up revenues by 55 per cent in 2026, compared with estimated 2024 revenues.

Don’t take our word for it. Jason Bazinet, an analyst at Citigroup C-N, expects GTA sales of 50 million units, which is about double the sales of the previous version of the game. What’s more, he thinks that Take-Two could become a takeover target in light of Microsoft Corp.’s US$75-billion deal for Activision Blizzard in 2023 as the gaming industry consolidates.

Consider combining this gift with shares of Xbox-maker Microsoft MSFT-Q for the perfect holiday morning of fun for the whole family.

For the coffee-loving colleague: Coffee beans.

Wait, is this an actual gift idea? No, of course not. This is a commodity play.

Arabica bean futures have doubled in price over the past year – gold is up a lousy 20 per cent over the same period – and recently touched their highest level since 1977. Poor growing conditions in Brazil, which has been hit with high temperatures and drought, have disrupted supply at a time when demand is still buzzing.

Admittedly, we haven’t worked out all the details here, such as how to sell beans if prices continue to rise. But the solution to falling prices is easy: Grind, drink and enjoy! This gift can’t go wrong.