Ten Reasons to Invest in Florida

Florida was a turning point in the presidential election four years ago. This year, it wasn't as significant politically but it is significant from an economic standpoint. Florida is one of those places you visit for pleasure and stay for business. Beautiful beaches and tropical weather attract tourists from all over the world, and the state’s low cost of living, and business friendly policies keep them there. Actually over 1,000 people relocate to Florida daily.

Some interesting facts about Florida are:

1. Florida residents spend less on energy than any other state in the country.
2. Florida is the top travel destination in the world, with a total of 77 billion visitors in 2004.
3. The aerospace industry of Florida generates 23,000 jobs.
4. Florida produces about 40% of total world supply of orange juice.
5. Florida is the number four producer of nonfuel minerals in the country, generating more than 9,000 jobs.
6. The state is the top producer of phosphate in the nation.
7. Florida has no state income tax.
8. Limited partnerships and S-corporations are exempt of income tax.
9. The state does not impose a property tax.
10. Florida is the 15th largest economy in the world.

The following companies are headquartered in Florida:

• Publix Super Markets, Inc. (PUSH.OB) is a retail supermarket chain in the state of Florida. The stock has a market cap of $102.37 billion, a P/E of 87, and it pays a yield of 0.4%.
• Carnival Corporation (CCL) is a cruise, hotel and vacation company, with property around the world. The stock has a market cap of $23.26 billion, a P/E of 10, a PEG of 0.88, and it pays a yield of 5.8%.
• CSX Corporation (CSX) is a transportation company. It provides rail services in North America. The stock has a market cap of $17.07 billion, a P/E of 12, a PEG of 0.68, and it pays a yield of 2.1%.
• FPL Group, Inc. (FPL) produces and sells electricity in the state of Florida. The stock has a market cap of $17.08 billion, a P/E of 14, a PEG of 0.98, and it pays a yield of 4.7%.
• Harris Corporation (HRS) is a communications company. Its customers include government, and broadcast networks. The stock has a market cap of $4.78 billion, a P/E of 11, a PEG of 0.51, and it pays a yield of 2.4%.
• Republic Services, Inc. (RSG) is a waste collection company. Its services include commercial, industrial and residential services throughout the United States. The stock has a market cap of $4.05 billion, a P/E of 16, a PEG of 1.11, and it pays a yield of 3.5%.
• Roper Industries, Inc. (ROP) is an energy systems developer. It produces scientific and industrial products and software. The stock has a market cap of $3.83 billion, a P/E of 14, a PEG of 0.86, and it pays a yield of 0.7%.
• Citrix Systems, Inc. (CTXS) is a developer and seller of software solutions. The stock has a market cap of $3.83 billion, a P/E of 21, and a PEG of 0.93.
• Royal Caribbean Cruises, Ltd. (RCL) is a cruise company that operates worldwide. The stock has a market cap of $4.03 billion, a P/E of 6, a PEG of 0.58, and it pays a yield of 3.5%.
• Regency Centers Corporation (REG) is a real estate investment company. The stock has a market cap of $2.91 billion, a P/E of 20, a PEG of 1.34, and it pays a divided of 7.0%.

Don't forget to check out the stocks from the states of Wisconsin, Louisiana, Michigan, and Kentucky.

Disclosure: Author does not own any of the above.

Comments

[REStroot:]

77 BILLION visitors?? don't you mean MILLION???

2008 Nov 09 09:26 AM

[je:]

You are wrong about property tax - and it went up three foldin 6 years although it is pulling back some now.

The state has a multitude of problems the least of which is infrastructure with water being at the top. As they try to reduce taxes to keep the people re-electing them their law enforcement will probably be the first thing cut. Their problems are to lengthy to go on here but you are so out of touch with the realities of Florida.

2008 Nov 09 10:25 AM

[Jon Smirl:]

I suspect the water problems would go away in Florida if the massive federal subsidies for sugar were cut.

2008 Nov 09 10:29 AM

[thannagan:]

Hurricanes anyone??? (Not to mentiona the insurance for same???) Try Arizona - on second thought, stay in FL.

2008 Nov 09 12:32 PM

[idahopilgrim:]

77 Billion vistors!! Florida energy bills are not the cheapest in the country! Your western states are due to Hydro power!! Property taxes,water bills and insurance continues to double and triple in cost. Publix has a PE lower than 10 % and return on investment has average around 12% per year for over 25 years for those who work for that great company since it is privately held. This is just a small portion that needs to be corrected on all this misinformation on this article. Shame on you!

2008 Nov 09 05:08 PM

[USETOBEFLOR...:]

YOU ARE SO RIGHT, THIS WRITER IS FROM MARS OR SOMEWHERE ELSE


On Nov 09 10:25 AM JE wrote:

> You are wrong about property tax - and it went up three foldin 6
> years although it is pulling back some now.
>
> The state has a multitude of problems the least of which is infrastructure
> with water being at the top. As they try to reduce taxes to keep
> the people re-electing them their law enforcement will probably be
> the first thing cut. Their problems are to lengthy to go on here
> but you are so out of touch with the realities of Florida.

2008 Nov 09 05:27 PM

[USETOBEFLOR...:]

My property taxes last year was well over 6K for a home valued under 300K...cheap living? I dont think so...very very bad article

2008 Nov 09 05:30 PM

[D-D:]

It is sad that Seeking Alpha authors don't double-check their articles before publishing it. There is a big difference between 77 million and 77 billion.
And yes, there are property taxes in Florida.

Let us not forget Darden Restaurants

2008 Nov 09 10:09 PM

[mtp:]

fact check please?

2008 Nov 10 08:27 AM

[notsosmart:]

this guy has an agenda re fla.my son lives there & its not so great.insurance costs out of sight(with high deductibles & many exclusions).one good hurricane & your whole neighborhood is gone.water is going to be a problem.i could name more but this author is not worth my time.

2008 Nov 10 09:01 AM

[South Flori...:]

Investing in florida, not only in stocks, but in commercial real estate has been a proven winner over the last 10 years. South florida alone has seen an explosion in retail, medical and professional office space.

2008 Nov 10 09:08 AM

[MJC:]

The author has overlooked not only the huge expense of insurance for hurricanes and flood damage, but how malpractice insurance has chased many Ob/Gyn's from the state. While many people do relocate there, a high percentage leave within a year. Food may be cheaper, but rents on the east coast are not.

This article is also out of date, since CCL cancelled their dividends for 2009.

2008 Nov 10 09:34 AM

[zylepp:]

When you move in you will hate your neighbors. You will pay $6,000 in property taxes (based on market value) only to find your neighbors are paying 2,700 a yr because they are locked in because they moved there 10 yrs ago. Nice Welcome, eh?? You're insurance is 4 times what it was ten yrs ago (if you can get it). The crime rate is very high! Overall i would never return to what was my home state. My kids have just moved out never to return also. Salaries are low.

2008 Nov 10 09:46 AM

[backdoc:]

This must have been writhing this article in 1968.. Proprty taxes can run around 20K per year with 8-10K extra for homeowners ins...

Plus electric/energy bills just increased 18%

2008 Nov 10 10:38 AM

[Ryanwahlstrom:]

Carnival suspended its dividend.

2008 Nov 10 11:32 AM

[notsosmart:]

with this plunging economy who is going to visit disney? who is cruising with carnival?here in ct. mystic seaport is laying people off by the dozen as reported this morning. they said the month of sept. was like all the people fell off the earth.nobody showed up.oct not much better.so the greed of the world grabbing our worthless(rated AAA) paper will hurt many tourist activities.of course if your unemployed youre sort of on vacation without having to travel.how soon will the cruise lines start mothballing ships as the airlines did with the planes post 9/11?

2008 Nov 10 12:24 PM

[Continually...:]

Half of Florida will be underwater in 30 years... great investment.

2008 Nov 10 03:43 PM

[USETOBEFLOR...:]

I think this writer has property he cant sell in Florida, and hoping this stupid and wrong article will bring some uninformed people to this area to try and live. If you want to live 3 or 4 familes in a home, and speak a foreign language (cuban, mexican, portugese, and many others) you can afford and can communicate enough to live in southern Florida. For us, I guess the foreigners can have it, cause we will not live that way.

2008 Nov 10 07:12 PM

[frisch333:]

The article is flawed, but I like living here in Florida, retired. I live in The Villages (central Florida) and there's a lot to like. Plenty to do: golf courses, both executive 9s and country club 18s, many swimming pools. tennis, pickleball, softball, horseshoes, polo, indoor and outdoor entertainment 7 days/nights a week, movie theaters, many restaurants, shopping centers and all accessible by golf cart. Oh, and very affordable.

Ed

2008 Nov 10 09:02 PM

[Foosie:]

Reason to invest in FPL: Dividend increases every year; state surrounded by water, competitors cannot string transmission lines over water; it is the largest windmill operator in U.S.; Florida not heavy in industrial users; hence electric competitors not interest in putting up plants there.

2008 Nov 11 07:05 PM

[Kodiac:]

I live in Florida and also. However, I am still cruising with CCL despite they are not paying dividends next quarter - some people are addicted. I agree that insurance has went up over the years, but shop around. I saved almost $2000 a year by switching my home insurance and around $1000 a year by switching my auto policy. It is a shame that some insurance companies raise their rates to get you to leave them when you have been a loyal customer for MANY years.

2008 Nov 18 08:14 AM

[dorkyME:]

great well can you tell me a reason why people should go visit FL and whats different about it then other states?

Mar 23 11:36 PM

[dorkyME:]

can you tell me what's the difference from FL and the other states? well I know a lot but why do you think people should go visit FL?

Mar 23 11:38 PM