Remember those gross anti-smoking warnings that were supposed to appear on
cigarette packages? Well the tobacco companies have won a temporary delay from a
U.S. District Judge giving the court more time to review the FDA mandate.
Obviously, many investors wouldn't touch these stocks with a twenty foot
cigarette holder. Other investors, who don't have concerns, like the 'bad
company discount' which tends to give tobacco stocks a higher yield than stocks
of other industries. There are ten publicly traded cigarette and tobacco
companies , almost all of which pay dividends, that have been turned up by
WallStreetNewsNetwork.com. Yields are as high as 8.9%. One example is Altria
Group Inc. (MO), which 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 12.6, and pays a very generous yield of
5.6%. The company's brands include Marlboro, Virginia Slims, Parliament, Benson
& Hedges, Basic, L&M, Copenhagen, Skoal, Red Seal, and Husky. Lorillard, Inc.
(LO) has a dividend payout rate of 5.0%. The stock, which markets the Newport,
Kent, True, Maverick, Old Gold, and Max brands, trades at 12.9 times forward
earnings. The company just boosted its dividend payout rate by an incredible
19%. Reynolds American Inc. (RAI) 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 PE
ratio of 12.8, and pays a nice yield of 5.5%. For a free list of all the high
yield tobacco stocks , which can be downloaded, sorted, and updated, go to
WallStreetNewsNetwork.com. Also, if you haven't seen the Graphic Color Anti
Smoking Pictures to Appear on Cigarette Packs , you should check them out.
Disclosure: Author did not own any of the above at the time the article was
written. By Stockerblog.com
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