Here is a statistic for you – the human population is rising by 200,000 people per day. For a lot of companies, that means 200,000 new potential customers. You can use this to your advantage when looking for companies to invest in for the long term.
Some industries will directly benefit from a growing population. Let’s look at some sectors tied directly to the human population, and some good plays that represent them.
Everybody has “gotta” eat
Whole Foods Market, Inc. (NASDAQ:WFM)
Food is one of the basic needs of society, and will correlate directly with a swelling population. Whole Foods Market, Inc. (NASDAQ:WFM) is an organic and natural foods supermarket chain. It operates in the US, Canada, and UK.
Source: Yahoo! Finance
- P/E: 40.4
- Dividend Yield: 0.71%
Whole Foods Market, Inc. (NASDAQ:WFM) is the market leader of a macro-economic shift that is still in its early stages. The US (and society in general) is starting to become more aware of the expanding problem that is obesity. Organic and natural foods have become more popular in recent years.
Whole Foods Market, Inc. (NASDAQ:WFM) is healthy financially as well. It has essentially no debt (total debt/equity ratio of 0), and is putting most of its earnings back into the company. Whole Foods is an enticing option that will grow with the popularity of healthy foods in the coming years.
Everybody has “gotta” stay healthy
Johnson & Johnson (NYSE:JNJ)
Johnson & Johnson is a health care conglomerate that sells products globally through its main business segments – Pharmaceutics, Medical Devices/Diagnostics, and Consumer Products.
Source: Yahoo! Finance
- P/E: 20.6
- Dividend Yield: 2.84%
Johnson & Johnson (NYSE:JNJ) is a major player in all of the industries it competes in. Its medical device/diagnostics division was the market leader last year. Johnson and Johnson also has a very strong pharmaceutical division with numerous products in its pipeline.
Johnson & Johnson (NYSE:JNJ) will see more opportunity as the baby boomers start to retire. It is estimated that for the next 17 years, 10,000 people will turn 65 per day. That means every segment of Johnson & Johnson will see more traffic.
In fact, Johnson & Johnson (NYSE:JNJ) recently reported its latest quarter where its sales saw a 8.5% increase from last year. This has resulted in an earnings per share growth of 13.8%. It is currently seeing double digit growth in emerging markets year to date.
With Johnson & Johnson (NYSE:JNJ) you have an investor’s dream. It combines two opposite “styles” of earning power. First, you have steady global leading consumer brands such as Tylenol and Motrin providing consistency and slow growth. In the other corner, you have the pharmaceutical and device segments hitting “home runs” that, while inconsistent, can give Johnson & Johnson that spark.
Everybody has “gotta” have electricity, travel, heat….
Exxon Mobil Corporation (NYSE:XOM)
ExxonMobil is the largest fully integrated oil company in the world.
Source: Yahoo! Finance
- P/E: 9.64
- Dividend Yield: 2.70%
Oil is still the “blood” that flows through society and keeps it going. It likely will for the foreseeable future. Similar to how oil stabilizes society, Exxon can stabilize your portfolio.
