Are Cigarette Stocks Smokin' with those High Yields?

There are many socially responsible mutual funds that avoid tobacco companies,
and many investors also do likewise. However, if you have no qualms about
investing in the producers of cigarettes, you might want to take a look at the
list of high yielding tobacco companies at WallStreetNewsNetwork.com, many of
which yield in excess of 3%. One high yielder is Lorillard (LO) which has a
payout of 4.7%. The stock, which markets the Newport, Kent, True, Maverick, Old
Gold, and Max brands, trades at 13 times forward earnings. Earnings for the
latest quarter were up 6.9% on a 14.4% increase in revenues. Another example is
Reynolds American Inc. (RAI), which makes and markets cigarettes and other
tobacco products including the Camel, Kool, Pall Mall, Doral, Winston, Salem,
Misty, Capri, Dunhill, and Natural American Spirit brands. The stock has a
forward price to earnings ratio of 13.1, and sports a yield of 5.7%. Vector
Group Ltd. (VGR) is a Florida based tobacco company that has many brands of
cigarettes including Liggett, Grand Prix, Eve, Pyramid, USA and nicotine-free
Quest. The stock has a price to earnings ratio of 22, and pays a yield of 8.9%.
Altria Group Inc. (MO) is a Virginia based company that makes and markets
cigarettes, cigars, and beer. It is the largest cigarette company by market cap
in the US. The stock has a forward PE of 12.2, and pays a yield of 5.7%. For a
list of all the high yield tobacco stocks , which and be downloaded, sorted, and
updated, go to WallStreetNewsNetwork.com. If you haven't seen the graphic color
anti smoking pictures which will be appearing on cigarette packs , you should
check them out. (Warning: some of them are gross.) Disclosure: Author did not
own any of the above at the time the article was written. By Stockerblog.com