“Deathcare” Industry Poised to Grow as Population Ages
An aging population is set to drive a boom in what might politely be dubbed the “posthealthcare” industry. Or, more to the point, the “deathcare” industry.
In the United States there are some 115,000 cemeteries, 22,000 funeral homes, and 1,155 crematories. There are 300 independent casket sellers.
This doesn’t even include sales conducted in funeral homes and cemeteries.
Yes, death is a big business – because in our society it’s expensive to die! Costs for a hearse, funeral home, casket, headstone, burial service, etc., can quickly run into not merely thousands, but tens of thousands of dollars. Obviously, some people are making a “killing” by providing services to the families of the deceased.
It may seem morbid to consider investing in a coming “death” boom. But companies that help bring dignified closure to the lives of those who have passed provide an important service. One for which there will be growing demand. Unlike more economically sensitive industries that experience boom/bust cycles, the deathcare industry has very predictable and consistent demand for its service. It therefore offers investors more stable earnings streams.
As for specific companies, Batesville Casket is the world’s largest maker of caskets. In 2008, Hillenbrand, Inc. (HI) became the parent company for Batesville Casket. The stock has a $1.9 billion market capitalization and a 2.7% dividend yield as of this writing.
We highlight this stock as a starting point for your own research. As always, the decision to invest in individual stocks entails risk. A financial advisor can help you determine whether a particular stock is appropriate for you and your risk tolerance.