5 Investments That Do Better in Winter

By Brittany Lyte on 20 January 2015 1 comment

This could be one of the snowiest and most frigid winters in the last 50 years, predicts Joe Bastardi of WeatherBell Analytics. That's bad for our heating bills and chances of avoiding a wretched winter cold. But it's great for certain types of investments, which tend to skyrocket in the ice and gloom.

Read on for our roundup of some of the best places to grow your money in the depths of winter. Because if your weather can't be hot, your investments might as well be.

1. Vail Resorts

Skiers behold: There's a publically traded ski resort, and it is Vail Mountain Resorts (NYSE: MTN). Perhaps it should be no surprise that its stock tends to spike during winter, when skiing and other snow sports at the company's seven resort properties are in full force. The 2014-2015 winter season is looking to be a particularly good one for Vail stockholders, following the company's recent announcement of plans to build the largest U.S. mountain resort at Utah's Park City, starting with an unprecedented $50 million investment. With such a game-changing project in the works, analysts are strongly recommending that investors buy Vail Resorts stock this winter season.

2. Johnson & Johnson

America's largest pharmaceutical company (NYSE: JNJ) does better in the markets when the weather is cold and stormy. Why? Because people are getting sick at higher rates and their skin is getting chapped — two unpleasant circumstances that can lead to sales spikes for drugs and body lotions, two of Johnson & Johnson's staple products. Analysts are forecasting an increase in the company's stock value over the course of the next 12 months, indicating healthy growth potential even well after the winter months are over.

3. Douglas Dynamics

The maker of snow plows and salt spreaders (NYSE: PLOW) stands to benefit greatly from a rugged winter season. Last year was an exceptionally snowy one and therefore an exceptionally profitable season for Douglas shareholders. "Record fourth quarter sales signify a continued improvement in business conditions compared to last year, as snowfall levels were strong across core markets," CEO James L. Janik said in a statement. If this winter follows suit, shareholders will again be sitting pretty.

4. Compass Minerals International

Compass Minerals (NYSE: CMP) is one of the largest providers of highway salt in the U.S. And if this winter plays out anything like last year, it's going to be a boom for the highway salt business. Dozens of cities across the nation ran out of road salt last year as storm after storm pummeled parts of the midwest and northeast. But regardless of how much white stuff the season brings us, Compass has increased its dividend in each of the past 10 years, making it a solid investment in and of itself.

5. Columbia Sportswear

The maker of winter coats and boots (NYSE: COLM) stands to cash in on a season of plentiful snow storms, especially since the brand is a fan favorite among both winter athletes and the everyday consumer. What's more, the company underwent a two-for-one stock split in September that made its shares more affordable to individual investors, according to a NASDAQ analysis. Our recommendation: Buy now and pray for snow.

What are your hot investments for winter?

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Guest's picture
Melody

Fun to see that at least something grows in the winter!