What makes a purchase 'once-in-a-decade'?

A 'once-in-a-decade' purchase refers to major consumer expenditures that typically happen very infrequently - perhaps only a few times in a person's life. These include buying a new home, purchasing a vehicle, taking a luxury cruise vacation, or investing in high-end jewelry. These transactions are characterized by their high cost and the significant financial commitment they represent for most consumers.

How do interest rates affect these companies?

Interest rates have a major impact on companies selling big-ticket items because consumers often finance these large purchases. When rates are low, monthly payments become more affordable, potentially boosting sales of homes, vehicles, and other expensive items. Conversely, when rates rise, financing costs increase, which can delay consumer decisions to make major purchases, potentially affecting these companies' sales and profits.

What is a dividend yield?

Dividend yield is the annual dividend payment amount divided by the current stock price, expressed as a percentage. It shows how much cash return you might receive relative to your investment. For example, if a stock costs $100 and pays $3 in dividends annually, the dividend yield is 3%. Many companies in the Once-In-A-Decade collection pay dividends, providing income to investors in addition to potential stock price growth.

What are projected sales and projected profit?

Projected sales (or revenue) reflects analysts' expectations about how much money a company will generate from selling its products or services in the future. Projected profit (or earnings) estimates how much money will remain after subtracting all expenses from those sales. These forward-looking metrics help investors gauge a company's growth potential and financial health. For companies selling big-ticket items, these projections can indicate anticipated consumer demand for major purchases.

Why include funeral services in a collection about major purchases?

While different in nature from other items in this collection, funeral services represent a significant one-time expense for families. The average funeral costs thousands of dollars and is typically an unavoidable purchase. Companies like SCI (Service Corporation International) operate in a stable industry with consistent demand, as these services are ultimately needed regardless of economic conditions, though the timing is unpredictable. This adds portfolio diversification within the theme of high-value, infrequent consumer transactions.

18 handpicked stocks

Once-In-A-Decade

This collection features companies that profit from life's biggest purchases - the ones you make only a few times. Carefully selected by our analysts, these businesses excel at maximizing value from milestone transactions like homes, vehicles, and luxury goods.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17