Panos Mourdoukoutas 9/24/2011 @ 1:55PM
Money parked in money market funds, checking accounts, and CDs these days is dead money, as it barely yields any income. But with the economy heading into a double-dip recession, where can investors find a better place to invest?
Some investors have been reaching for pharmaceutical stocks like Pfizer (NYSE:PFE), Bristol-Myers Squib (NYSE:BMY), and Abbot Laboratories (NYSE:ABT) that pay close to 5 percent dividend. Others rush to buy utility companies and commercial real estate trusts like Duke Energy (NYSE:DUKE), Southern Company (NYSE:SO), HCP, Inc. (NYSE:HCP), and Kimco Realty (NYSE:KIM) that pay similar or even higher dividends.
The problem, however, is that these trades have already become crowded, as they have been popular for too long among carry trade investors. Besides, pharmaceutical companies are sensitive to budgetary cuts, while commercial real estate trusts are exposed to an impending recession. So what is an alternative for investors? Are there any recession proof dividend paying companies?
Yes, funeral services, and cemetery companies! They do pay reasonable dividends, and have the potential for substantial appreciation, as they ride on favorable demographics, the aging of baby-boomers, who unfortunately would be offered these services irrespective of the state of the economy.
Here are four publicly traded companies and their financials: Service Corporation International (NYSE:SCI), specializing in death care services in the US, Canada, and Germany; StoneMor Partners (STON), owning cemeteries; Stewart Enterprises (STEI) and Carriage Services (CSV), both specializing in death services and merchandising–though investors are advised to take a more comprehensive view on the financials of these companies before they commit any funds to any particular company.
Source http://www.forbes.com/sites/panosmourdoukoutas/2020/09/24/a-safe-place-to-invest-your-dead-cash/