4 Death Stocks With Dividends And Value

Includes: CSV, SCI, STEI, STON
by: David Zanoni

After I die, wherever my spirit goes, I'm going to try to get back and visit my skeleton at least once a year, because, 'Hey, old buddy, how's it going?'"

- Jack Handy

On a serious note, we will all eventually die someday, that is a certainty. This certainty can be used as an advantage in the investing world. There are a few publicly traded companies that are thriving from selling funeral related products. All of the choices in this article pay dividends of varying amounts. When dividends are combined with steady stock growth, you have the makings of a great investment. The following stocks in the funeral services/products field pay dividends and have expectations of growing earnings steadily over time.

Carriage Services Inc. (NYSE:CSV) operates in two segments: funeral home operations and cemetery operations. Currently, they operate 147 funeral homes in 25 states. The funeral home operations provides the following services: removal and preparation of remains, consultations, sale of caskets and other funeral merchandise, visitation and services facilities, and transportation services. The cemetery operations segment provides interment services, memorials, vaults, mausoleum crypts, and niches, and related cemetery merchandise. It operates 33 cemeteries in 12 states. CSV stock is only selling at $5.63 with a dividend of 1.9%. Carriage Services has grown earnings at 12.9% the last five years. If they continue this growth for the next five years, its total annual stock yield (dividends + stock growth) should be 14.8%. Its stock is currently trading at less than book value per share of $6.86. This is a good show of value for Carriage Services.

Stewart Enterprises (NASDAQ:STEI) provides funeral and cemetary products such as cemetary property, cremation, funeral home services, lawn crypts, community mausoleums, monuments, markers, and burial vaults. Stewart Enterprises operates 218 funeral homes and 141 cemeteries. It pays a dividend of 2.4%. combined with 5 year expected earnings of 10%. This gives it a total annual yield of 12.4% Its stock is trading at $6.06 which is only 1.3 times book value per share of $4.73. This also indicates Stewart as a good value. Another positive point is that insiders have been buying shares of STEI in the last two months.

Stonemor Partners LP (NYSE:STON) operates 260 cemeteries and 58 funeral homes in 27 states and in Puerto Rico. It provides all standard cemetery services and related merchandise throughout the northeast, southeast, and western regions of the U.S. It also provides the standard funeral home services/products that were mentioned earlier in the article. The standout feature of Stonemor is its dividend of 8.1% This healthy dividend is combined with solid annual earnings growth of 21.6% for the last 5 years and an expected annual earnings growth of 13% for the next 5 years. This givesit a potential total annual yield of 21.1%. STON stock is trading at $28.64 which is only 2.72 times book value per share, again showing value.

Services Corp International (NYSE:SCI) provides numerous cemetery and funeral home services in the United States, Canada, and Germany. It operates a total of 1,254 funeral homes and 372 cemeteries. Its dividend of 2.1% is combined with solid annual earnings of 18.9% for the last 5 years and an expected annual earnings growth of 12% for the next 5 years. The combination of dividends and expected earnings growth provide a total annual yield of 14.1%. Their stock price is trading at $10.07 which is showing value at only 1.6 times book value per share of $6.27.


All of these are stocks are trading at good values for the long-term. The dividends provide steady income to combine with their potential stock growth. These companies have an endless supply of customers so they should do well 5,10,or 20 years into the future. With the dividend yields that some of them are paying, buying one of these stocks can help pay for your own cemetery plot.

If when you die you get a choice between pie heaven and regular heaven, choose pie heaven. It might be a trick but if not mmmboy

- Jack Handey

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.