Believe it or not, face mask stocks might be the next billion-dollar money-making opportunity. Financial analysts estimated mask sales in the first quarter of 2020 topped $74.90 billion. Some countries, if not close to all, have made it mandatory to wear masks indoors. Do the math. A quick calculation reveals that the world will need nearly seven billion masks in 2021.
The face mask market is projected to grow from USD 737 million in 2019 to USD 22,143 million in 2021 and then reduce to USD 3,021 million by 2025. Furthermore, the ongoing COVID-19 pandemic will drive the market of surgical masks from 2019 to 2021.
Are you curious how to tap into the profits from the face mask frenzy? You can buy face mask stocks if you don’t own a mask-producing factory. Today, I will show you one company you might want to invest in to tap this money-making opportunity.
Chart by TradingView
Believe it or not, face mask stocks might be the next billion-dollar money-making opportunity. Financial analysts estimated mask sales in the first quarter of 2020 topped $74.90 billion. Some countries, if not close to all, have made it mandatory to wear masks indoors. Do the math. A quick calculation reveals that the world will need nearly seven billion masks in 2021.
The face mask market is projected to grow from USD 737 million in 2019 to USD 22,143 million in 2021 and then reduce to USD 3,021 million by 2025. Furthermore, the ongoing COVID-19 pandemic will drive the market of surgical masks from 2019 to 2021.
Are you curious how to tap into the profits from the face mask frenzy? You can buy face mask stocks if you don’t own a mask-producing factory.
Today, I will show you one company you might want to invest in to tap this money-making opportunity.
List of Face Mask Stocks
Are you looking for face mask stocks to buy? How would you do so? It’s not like you can look for face masks. However, there are the companies that make them that you can invest in. Let’s take a look at one such company you can invest in.
3M (NYSE: MMM)
From humble beginnings as the Minnesota Mining and Manufacturing Company in 1902, 3M offers over 60,000 products with a client base that spans the globe.
This well-established conglomerate has championed innovation, developing industry-first products, keeping them well ahead of the competition.
$32 billion a year of products, that’s how much 3M sells. They’ve woven themselves into our daily lives, from tapes and adhesives to medical equipment and psychedelic décor in Hong Kong’s Cristal Bar.
Over the decades, 3M stock price has risen by leaps and bounds. From $5.85 in 1968 to $236 at the beginning of 2020, they’ve seen their share price rise 40 times.
Granted, post-it notes and glue aren’t the most exciting businesses, but they have cash flow, and that’s all that matters. For the first nine months of 2020, 3M’s operating cash flow was $5.6 billion.
And once you subtract $1.1 billion for capital expenditures, you can see a lot left over to pay the $2.5 billion of dividends.
Bright Future for 3M
It’s no secret that the demand for masks and prices are soaring. Wired magazine recently reported that a box of 20 3M particulate respirators has surged from $17 to $70 since the virus outbreak.
Not surprisingly, with demand increasing, suppliers such as 3M are preparing to boost production.
With the second wave on our heels, the government announced their plan to enter into a contract with 3M to produce 35 million more masks monthly.
Although it’s unclear if 3M will make them, they will provide them, which means more sales and profits.
And just this past week, 3M shares were up 4.15%, changing hands at $169.79 each. This move bumps up their six-month gain to approximately 32%.
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Why You Should Consider Buying 3M
Coronavirus and face masks aside, 3M is an excellent business. Arguably, MMM is probably one of the US’ most well-diversified companies. They are well diversified with a business span that spans health care and office supplies to industrial goods. To that end, 3M has made $7.7 billion worth of acquisitions in healthcare to boost growth. But that’s not the only reason you should buy shares in this face mask stock producer.
Let me introduce to you why I want to buy 3M shares…
Their dividend payout.
Face Mask Stocks Dividend
Arguably, their dividend is one of the main reasons to buy and hold 3M stock for the long haul. For 62 years straight, the board of directors has raised the dividend payout.
At the current share price, the dividend yield is 3.46%. As you might expect, all those hikes add up to a considerable return on investment yield.
To put this in perspective, over the last 30 years, there have only been three other times when you could buy 3M stock for a 3.46% dividend yield: 1991, 2009, and right now.
While 3M stock could get cheaper in the short run, it looks like a good buy for your portfolio for long-term investors. If you want to bankroll your retirement, consider buying 3M.
However, if 3M is too pricey for you, some of the industry’s major players are listed below.
Best Trading Companies
Major Players in the Face Mask Industry
In no particular order, larger-cap names like 3M, Kimberly Clark, and Honeywell are more “well known,” but you should check all these stocks on TipRanks!
- 3M
- Kimberly-Clark
- KOWA
- Honeywell
- Uvex
- SPRO Medical
- Prestige Ameritech
- Owens & Minor
- Makrite
- McKesson
- Unicharm
- 16771Japan Vilene
- CM, Hakugen
- Cardinal Health
- Ansell
- Molnlycke Health
- Shanghai Dasheng
- The Yin
- Moldex-Metric
- Suzhou Sanical
- Essity (BSN Medical)
- Gerson
- Tamagawa Eizai
- Alpha Pro Tech
- Jiangyin Chang-hung
- Irema
- Zhende
- Sinotextiles
- Winner,
- Yuanqin,
- Troge Medical,
- DACH
- Alpha Pro Tech, Ltd. ($APT )
I encourage you to explore them to decide if they are worthwhile to invest in. At Bullish Bears, we don’t give you investment advice. That’s why you must do your homework before spending your hard-earned dollars.
Final Thoughts: Face Mask Stocks
Facemasks aren’t going anywhere anytime soon. Many provinces and cities have made these accessories mandatory. That’s a grim reality.
Investors may be underestimating the vast depth of the face mask market. For savvy investors, this could be your golden opportunity.
As millions stock up on face masks, I highly suggest you stock up on face mask stocks. Whether it’s stock in 3M or any other companies listed above, don’t let this opportunity pass you by.
