On the Labor Day weekend, part of the screen watching was what was Hurricane Dorian doing and when was the Hurricane going to do damage to the mainland US. It was a slow moving storm and it left much damage to the Bahamas. Watching some of the reports, even though the reporters were safe, the constant rain and wind noise were a chore to get through, it was easier to get out of the storm’s way. This was the good choice and millions of people were told by state governments to leave the coastline because of the rain, the wind and storm surges. If you want to see the power of the seas, check out a You Tube clip of the Perfect Storm staring George Clooney and Mark Wahlberg titled the Giant Wave.
After worrying about the people, then the property, the question from every Hurricane season is which companies tend to benefit and which ones do not. How do companies respond to these situations? Two of the best companies responding are Wal-mart and Home Depot, they have great logistical operational plans to help out consumers particularly if they know it advance of the disaster. In the case of Hurricane season and the first one, they can and do order extra supplies to be in the area before and after the event.
Linking to dividend paying stocks, for all disasters worry about the people first, but afterwards look at how did companies manage through the disaster? If they did a good job, chances are when there are no disasters they also do a good job. If you worry about their concentration of the primary income earnings and they did not do a good job, look for alternatives.
There are more questions than answers, till the next time – to raising questions.