The graying of America could be your golden opportunity to invest in stocks.
Many publicly traded companies stand to gain by providing technologies, services, products and health care to our aging population. Statistics suggest why:
- About 10,000 Americans turn 65 each day.
- About 15 percent of Americans (almost 1 in 6) already are there, the Census Bureau estimates.
- By 2030, 1 in 5 Americans will be 65 or older.
- The CDC says women at age 65 today have a life expectancy of 20.6 more years; men, 18.1.
Many in this demographic might have been slow adopters of digital devices. But, now they’re tech-savvy, marketers say. They’ll likely stay in their homes longer with electronic helpers like Amazon’s Alexa and Google Home, ordering in groceries and products.
When they do need help and companionship, there are health care services, home care assistants and skilled nursing and assisted-living communities that are ready to jump in.
There’s no payoff guarantee, but here are 12 companies with potential for big gains from our silver economy.
1. UnitedHealth Group
You may know UnitedHealth Group (NYSE: UNH) best for its relationship with AARP, through which it sells Medicare supplement (Medigap) and Medicare Advantage insurance coverage and Medicare prescription drug plans. While advanced-age care is UNH’s largest driver of revenue, it also sells employer and individual health insurance plans through its UnitedHealthcare brand, and its Optum platform provides information and technology-enabled health services.
Share price range in 2018: $208.48 to $287.94; closing 2018 price: $249.12.
2. CVS Health
Your local CVS pharmacy is one of 9,800 stores, about 1,100 walk-in MinuteClinics, a pharmacy benefits manager with approximately 93 million plan members, a dedicated senior pharmacy care business serving more than 1 million patients annually and a stand-alone Medicare Part D prescription drug plan. CVS (NYSE: CVS) recently completed its purchase of Aetna insurance, which it hopes will lead to overall better-managed, lower-cost health care.
Share price range in 2018: $60.14 to $83.88; closing 2018 price: $65.52.
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3. Royal Caribbean Cruises
If you’ve saved enough, you’re likely to travel more in your first 10 years after you retire, analysts say. And Royal Caribbean (NYSE: RCL), which owns Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises, is ready to sail off with you aboard.
Share price range in 2018: $89.48 to $135.65; closing 2018 price: $97.79.
4. Lowe’s Companies
One of the nation’s leading home improvement stores, Lowe’s (NYSE: LOW) expects you and others to shop at its stores whether the economy is good or bad. When times are good, you might fix up a house for sale, build an addition or get the materials for new construction; if bad, you’ll buy paint and supplies to improve what you have while waiting for better times. New empty nesters and older homeowners who want to age in place often remodel.
Share price range in 2018: $81.16 to $117.70; closing 2018 price: $92.36.
5. Vail Resorts
Not only are you likely to live longer than retirees of earlier generations, you’ll be more physically active, at least at first. That benefits companies like Vail Resorts (NYSE: MTN), which operates numerous ski resorts in Colorado, California, Nevada, Utah, Vermont, New Hampshire and elsewhere (including Australia), as well as three urban ski areas. Besides skiing and snowboarding, the resorts offer mild-weather activities such as sightseeing, mountain biking, guided hiking, zip lines, challenge ropes courses, alpine slides and mountain coasters.
Share price range in 2018: $200.29 to $302.76; closing 2018 price: $210.82.
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6. Bristol-Myers Squibb
If you’ve seen the advertising blitz for Otezla, a pill that helps fight plaque psoriasis, you know Celgene, the biopharmaceutical company also known for the multiple myeloma drug Revlimid. Celgene soon will be part of Bristol-Myers Squibb (NYSE: BMY), whose dozens of medicines include familiar names such as Coumadin, Eliquis and Plavix. The transaction, announced Jan. 3, creates a biopharma company focused on the needs of patients with cardiovascular disease, cancer, and inflammatory and immunologic diseases, company officials say.
Share price range in 2018: $44.30 to $70.05; closing 2018 price: $51.98.
7. Gilead Sciences
You may someday need medicines developed by Gilead Sciences (NAS: GILD), a research-based biopharmaceutical company with operations in more than 35 countries. The company developed drugs to combat HIV and hepatitis C and has in the pipeline treatments that could fight cancer, liver disease, rheumatoid arthritis and other inflammatory and respiratory ailments.
Share price range in 2018: $60.32 to $89.54; closing 2018 price: $62.55.
8. Ameriprise Financial
When mulling your financial future, you could invest in a company selling you financial advice. Many people reaching retirement want to make sure they have enough money to last another 20, 30 or more years. “After working, saving, investing and making sacrifices for decades to build a nest egg, transitioning to spending can be challenging,” says Marcy Keckler, vice president of financial advice strategy at Ameriprise Financial. “Retirement requires individuals to think differently about money.” Ameriprise (NYSE: AMP) has more than $875 billion in assets under management and administration.
Share price range in 2018: $95.69 to $183.90; closing 2018 price: $104.37.
If you looked out your window over the holidays, no doubt many porch deliveries you saw were by Amazon.com (Nasdaq: AMZN). Baby boomers are prime users of Amazon.com and its electronic devices such as Kindle, Echo and Fire TV. Consumer preferences of older Americans will trend toward online ordering rather than going to the store, analysts predict. Also, Amazon Web Services is a leader in cloud computing.
Share price range in 2018: $1,170.51 to $2,050.50; closing 2018 price: $1,501.97.
10. Brookdale Senior Living
If you need to move into a senior living community, you might find it’s run by Brookdale (NYSE: BKD). The largest U.S. operator of senior living communities includes more than 950 independent living, assisted living, dementia-care communities and continuing care retirement centers in 46 states. Brookdale also offers home health, hospice and outpatient therapy services. Although it has lost money over the past few years, analysts say Brookdale has trimmed high operating costs, sold off several communities and has positive earnings outlook, especially considering the nation’s graying demographics.
Share price range in 2018: $6.08 to $10.39; closing 2018 price: $6.70.
One of these days, you might find yourself going to the doctor’s office or living in a senior residence owned by HCP (NYSE: HCP), a real estate investment trust. HCP contracts management companies such as Brookdale, Atria and others to operate independent-living and assisted-care communities it owns.
Share price range in 2018: $21.48 to $30.27; closing 2018 price: $27.93.
12. The Ensign Group
Another company you may need as you age is the recently expanded Ensign Group (NAS: ENSG), whose subsidiaries provide skilled nursing and assisted living services, physical, occupational and speech therapies, home health and hospice services and other rehabilitative and health care services at 244 health care facilities, 22 hospice agencies, 24 home health agencies and seven home care businesses in 16 states.
Share price range in 2018: $21.67 to $48.96; closing 2018 price: $38.79.
What stocks do you think would pay off with the graying of America? Post a comment below or share your ideas with us on Facebook.
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