Best of the Week
Most Popular
1.UK House Prices Momentum Crash Threatens Mini Bear Market 2017 - Nadeem_Walayat
2.Perfect Storm - This Fourth Turning has Over a Decade of Continuous Storms to Come - James_Quinn
3.UK House Prices Momentum Crash Warns of 2017 Bear Market - Video - Nadeem_Walayat
4.Billionaire Investors Backing A Marijuana Boom In 2017 - OilPrice_Com
5.Emerging Markets & Basic Materials Stocks Breaking Out Together - Rambus_Chartology
6.Global Currency Reserve At Risk - Jim_Willie_CB
7.Gold and Silver: Your Stomach Is Probably Wrenching Right Now - The_Gold_Report
8.Warning: The Fed Is Preparing to Crash the Financial System Again - Graham_Summers
9.Basic Materials and Commodities Analysis and Trend Forecasts - Rambus_Chartology
10.Discover Why A Major American Revolution Is Brewing - Harry_Dent
Last 7 days
3 Psychological Ingredients behind Great Web Content - 17th Aug 17
The War on Cash - Rogoff, Orwell and Kafka - 17th Aug 17
The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - 16th Aug 17
Stocks, Bonds, Interest Rates, and Serbia, Camp Kotok 2017 - 16th Aug 17
U.S. Stock Market: Sunrise ... Sunset - 16th Aug 17
The Next Tech Crash Could Delay Your Retirement by a Decade - 15th Aug 17
Gold and Silver Precious Metals Nearing Breakout - 15th Aug 17
North Korea Showdown: Pivotal Market Turning Point - 15th Aug 17
Tech Stocks DOT COM Bubble Do-Over? - 14th Aug 17
Deep State Conspiracy or Chaos - 14th Aug 17
From the Trans-Atlantic Axis and the Trans-Asian Axis - 14th Aug 17
Stock Market Intermediate Correction Underway - 14th Aug 17
The Islamic State Jihadi Pivot to Asia - 13th Aug 17
Potential Pivots Upcoming for Stocks and Gold - 13th Aug 17
North Korean Chinese Proxy vs US Military Empire Trending Towards Nuclear War! - 12th Aug 17
Gold Stocks Coiled Spring - 12th Aug 17
Neil Howe: The Amazon-Walmart Rivalry Will Determine the Future of Retail - 12th Aug 17
How to Alton Towers Half Price Discount Entry 2017 and 2018, Any Time, No Pre-Booking! - 12th Aug 17
Top 3 Technical Trading Tools Part 2: Relative Strength Index (RSI) - 11th Aug 17
What Makes Women Better Investors - 11th Aug 17
Crude Oil Price Precious Metals Link in August - 11th Aug 17
Influencer Marketing Predictions All Businesses Should Take Into Account - 11th Aug 17
Really Bad Ideas - Government Debt Isn’t Actually Debt - 10th Aug 17
Gold Sees Safe Haven Gains On Trump “Fire and Fury” Threat - 9th Aug 17
Why Is The Stock Market Not Trading On Fundamentals Lately? - 9th Aug 17
USD/CAD - Can We Trust This Breakout? - 9th Aug 17
New Monthly Rebate to Help Reduce Your Trading Costs - 9th Aug 17
Stock Market Divergences Are Now Appearing! - 9th Aug 17
Is Inflation an issue or did the Fed Mess Up? - 8th Aug 17
Top 3 Technical Trading Tools Part 1: Japanese Candlesticks - 8th Aug 17
Researchers Find $10 Billion Hidden Treasure In A Dead Volcano - 8th Aug 17
What Happened to Thousands of Sheffield's Street Trees 2017 - Fellings Documentary - 8th Aug 17
Solar, Bubble, Banks, War, and Legal Tender: Five Reasons Why You Should Buy Silver Now - 7th Aug 17
CRASH - If Some People Do It, Nothing Bad Happens, But If Everyone Does It, All Hell Breaks Loose - 7th Aug 17
Gold and Silver : The Battle for Control - 7th Aug 17
Precious Metals Sector is on Major Buy Signal - 7th Aug 17
Stock Market - Has Time Run Out? - 7th Aug 17
Get Ready for an Historic Upside Gold and Silver Run - 7th Aug 17
BOOM! Bitcoin Rockets To New All-Time High As Cryptocurrencies Surge Higher! - 7th Aug 17
U.S. Dollar: This Crash Signals the End - 6th Aug 17
Predicting The Price Of Gold Is A Fool’s Game - 6th Aug 17
Asda Sales Collapse and Profits Crash! UK Retailer Sector Crisis 2017 - 6th Aug 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

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