Best of the Week
Most Popular
1.UK General Election BBC Exit Polls Forecast Accuracy - Nadeem_Walayat
2.UK General Election 2017 Seats Final Forecast, Labour, Conservative Lib-Dem, SNP - Nadeem_Walayat
3.UK General Election 2017 Forecast: Conservative 358, Labour 212 Seats - Nadeem_Walayat
4.Theresa May to Resign, Fatal Error Was to Believe Worthless Opinion Polls! - Nadeem_Walayat
5.UK House Prices Forecast General Election 2017 Conservative Seats Result - Nadeem_Walayat
6.The Stock Market Crash of 2017 That Never Was But Could it Still Come to Pass? - Sol_Palha
7.[TRADE ALERT] Write This Gold Stock Ticker Down Now - WallStreetNation
8.UK General Election Results Map 2017 vs 2015 vs Opinion Polls - Nadeem_Walayat
9.Orphaned Poisoned Waters,Severe Chronic Water Shortage Imminent - Richard_Mills
10.How The Smart Money Is Playing The Lithium Boom - OilPrice_Com
Last 7 days
US Bonds and Related Market Indicators - 27th Jun 17
Stocks At Record Highs: Market Sentiment Still Bullish - 27th Jun 17
Stock Market Running Out of Steam - 27th Jun 17
Gold Back With A Vengeance As Bitcoin Bubble Bursts - 26th Jun 17
Crude Oil Trade & Nasdaq QQQ Update - 26th Jun 17
Gold and Silver Ongoing Consolidation May End Soon - 25th Jun 17
Dollar May Become “Local Currency of the U.S.” Only - 25th Jun 17
Sheffield Great Flood of 2007, 10 Years On - Unique Timeline of What Happened - 24th Jun 17
US Stock Market Correction Could be Underway - 24th Jun 17
Proof That This Economic Recovery Narrative is False - 24th Jun 17
Best Cash ISA for Soaring Inflation, Kent Reliance Illustrates the Great ISA Rip Off - 24th Jun 17
Gold Summer Doldrums - 23rd Jun 17
Hedgers Net Short the Euro, US Market Rotates; 2 Horsemen Set to Ride? - 23rd Jun 17
Nether Edge By Election Result: Labour Win Sheffield City Council Seat by 132 Votes - 23rd Jun 17
Grenfell Fire: 600 of 4000 Tower Blocks Ticking Time Bomb Death Traps! - 22nd Jun 17
Car Sales About To Go Over The Cliff - 22nd Jun 17
LOG 0.786 support in CRUDE OIL and COCOA - 22nd Jun 17
More Stock Market Fluctuations Along New Record Highs - 22nd Jun 17
Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - 22nd Jun 17
Green Party Could Control Sheffield City Council Balance of Power Local Election 2018 - 22nd Jun 17
Ratio Combo Charts : Hidden Clues to the Gold Market Puzzle - 22nd Jun 17
Steem Hard Forks & Now People Are Making Even More Money On Blockchain Steemit - 22nd Jun 17
4 Steps for Comparing Binary Options Providers - 22nd Jun 17
Nether Edge & Sharrow By-Election, Will Labour Lose Safe Council Seat, Sheffield? - 21st Jun 17
Stock Market SPX Making New Lows - 21st Jun 17
Your Future Wealth Depends on what You Decide to Keep and Invest in Now - 21st Jun 17
Either Bitcoin Will Fail OR Bitcoin Is A Government Invention Meant To Enslave... - 21st Jun 17
Strength in Gold and Silver Mining Stocks and Its Implications - 21st Jun 17
Inflation is No Longer in Stealth Mode - 21st Jun 17
CRUDE OIL UPDATE- “0.30 risk is cheap for changing implication!” - 20th Jun 17
Crude Oil Verifies Price Breakdown – Or Is It Something More? - 20th Jun 17
Trump Backs ISIS As He Pushes US Onto Brink of World War III With Russia - 20th Jun 17
Most Popular Auto Trading Tools for trading with Stock Markets - 20th Jun 17
GDXJ Gold Stocks Massacre: The Aftermath - 20th Jun 17
Why Walkers Crisps Pay Packet Promotion is RUBBISH! - 20th Jun 17

Market Oracle FREE Newsletter

The MRI 3D Report

Investing in the World’s Most Unstoppable Trend

Companies / Sector Analysis Feb 17, 2013 - 05:45 PM GMT

By: Investment_U

Companies

Matthew Carr writes: There is an industry that’s outperformed nearly any you could imagine.

Gold… Left in the dust.

Oil… Not even close.

Natural gas… Nope.

Silver… Yup, beat that too.


Healthcare… Indeed.

It’s an industry we’ll all eventually need, every person on this planet.

Face it:

You are going to die.

Even worse, everyone you love – your friends and family – are going to die too.

It may be by natural causes. It may be by a natural disaster. It may be by something tragic – a drunk driver, a random act of violence or a horrible accident.

Whatever the case may be, it’s inevitable. Life is momentary. Death is infinite.

In the United States, on average, 2.5 million people die each year. But this is about to pick up as the Baby Boomers say their last farewells. And by 2040, the number of people dying each year in the United States will practically double from the level it’s at now.

Death is a commodity. It even has its own seasonal uptick as the storm and flu seasons run amok across the United States. And it’s a business – one that has a constant market. A market that is constantly growing.

Despite appearances, the vast majority of funerals – or celebrations of life, as they’re now called – in this country aren’t handled by small, little family-owned and -operated businesses. They’re handled by large, publicly traded companies.

And shareholders are reaping exceptional rewards.

My Funeral Services Index, made up of the four largest funeral services and cemetery operators in the country, has obliterated the performance of almost any other industry.

During the last 13 months – since January 2012 – this index is up 64.30%, including dividends.

Over the last five years, the return is an astronomical 307.32%!

The only thing that can come close is the performance of silver. The iShares Silver Trust (NYSE: SLV) is up 170.82% since 2009.

So, let’s meet the companies in my Funeral Services Index

#1.Carriage Services (NYSE: CSV)

Over the last 13 months, the return on Carriage Services is 155.73%, including dividends. Since January 2009, the gain is a funeral services industry best of 625.12%.

Carriage Services operates in two segments – Funeral Home Operations and Cemetery Operations.

CSV is in the micro-cap range, with a market cap of $260.4 million. But revenue for CSV has steadily been ticking higher. Since 2009, annual sales have increased from $177.6 million to $204.3 million in 2012. During that span, earnings per share increased from $0.40 in 2009 to $0.84 in 2012.

#2. Stewart Enterprises Inc. (Nasdaq: STEI)

STEI is a little larger than CSV, with a market cap of $662.5 million. Over the last year, the return on Stewart Enterprises is a respectable 40.05%, including dividends. Since January 2009, the gain is 186.75%.

The company owns 217 funeral homes and 140 cemeteries in the United States and Puerto Rico.

Revenue, like CSV’s, is steadily ticking higher over the last several years, rising from $499 million in 2009 to $527.9 million in 2012. It also increased its dividend 50% in 2012.

#3. Stonemor Partners LP (NYSE: STON)

The $1 billion market cap Stonemor hasn’t had as great of a run as CSV during the last year. But because of its hefty dividend, the return is 20.66%. And over the last five years, that dividend has helped bolster the return to 199.27%.

Stonemor is a much larger funeral services conglomerate – the second largest in the country – owning and operating 274 cemeteries and 69 funeral homes in the United States and Puerto Rico.

But the company offers an enticing 9.4% dividend yield.

The company’s revenue since 2009 is seeing one of the higher growth rates, increasing from $181.2 million to $245.6 million in 2012, with its dividend rising from $2.22 per share in 2009 to $2.36 per share in 2012.

In the first nine months of 2012, funeral home revenue increased 24.6%, while pre-need cemetery contracts increased 10.7%.

#4. Service Corporation International (NYSE: SCI)

The largest of the funeral service operators, with a market cap of $3.2 billion. Like CSV, it operates in two segments – Funeral and Cemetery Operations – owning 1,432 funeral service locations and 374 cemeteries in the United States.

Over the last year, the return on SCI is a decent 40.75%, including dividends. And shares are just off their 52-week high.

Since January 2009, the return on Service Corp. is – like the rest of the Funeral Services Index members – an eye-opening 218.11%.

Being considerably larger than its competitors, SCI’s revenue isn’t increasing as rapidly. But as with the rest of the industry, it’s seeing steady growth. In 2009, sales for SCI were $2.1 billion, and rose in 2012 to $2.4 billion.

The company also increased its dividend 50%, from $0.16 per share annually in 2010, to $0.24 per share in 2012.

We can’t escape it. Death is eventually going to get us all. At least until we find a cure for it or there’s a real-life outbreak like in The Walking Dead. The funeral services industry is consumer-driven, just like any other service sector.

So, you can embrace it and profit from it. Or choose to pretend it’s not a reality…

Good investing,

Matthew

Editor’s Note: Matthew Carr’s “Doomsday Preppers’ Portfolio,” originally published in Investment U last August, has returned 27.84% to date.

Source : http://www.investmentu.com/2013/February/the-worlds-most-unstoppable-trend.html

by , Investment U Research

http://www.investmentu.com

Copyright © 1999 - 2013 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife