Monday, June 02, 2008

Highest Yielding Cigarette Stocks

Are you looking for a stock that is recession proof, generates worldwide sales, and pays a high yield, you may be just looking for a cigarette stock. About 5.5 trillion cigarettes are produced annually and smoked by over one sixth of the world's population. Here are some cigarette companies that have dividends that are smokin'.

Vector Group Ltd. (VGR) is a Florida based company that has numerous brands of cigarettes of Liggett, Grand Prix, Eve, Pyramid, USA and nicotine-free Quest. The stock has a PE of 17.576 a PEG of 1.54 , and pays a yield of 9 %.

Reynolds American Inc. (RAI) makes and markets cigarettes and other tobacco products including the Camel, Kool, Pall Mall, Doral, Winston, Salem, Misty, Capri, Dunhill, State Express 555, and Natural American Spirit brands. The stock has a PE of 10.901 a PEG of 1.99 , and pays a yield of 6.2 %.

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 PE of 4.969 a PEG of 1.33 , and pays a yield of 5.2 %.

British American Tobacco plc (BTI) is a London based company that markets cigarettes and cigars under the Dunhill, Kent, Kool, Lucky Strike, Pall Mall, Rothmans, Vogue, Viceroy, and Peter Stuyvesant brands. It is one of the largest cigarette companies in the world by market cap. The stock has a PE of 17.287 a PEG of 1.31 , and pays a yield of 4.8 %.

Carolina Group (CG) is a New York based manufacturer and marketer of cigarettes under the Kent, Newport, Maverick, True, and Old Gold brand names The stock has a PE of 15.077 a PEG of 1.76 , and pays a yield of 2.5 %.

If you like high yield stocks, you might want to consider REITs, electric utilities, monthly dividend stocks, Canadian income trusts, and high yield U.S. income partnerships.

Author does not own any of the above.

By Fred Fuld at

1 comment: Team said...

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Today that is 20-June-08 Inflation data has broken the records of past 13 years. Today declared Inflation was 11.05% which is too high. From last one month market is in no trade zone. Everyone is feeling pain from market response.

Just watch

The Sensex has lost more than 27% since its January peak, and trading volumes are down 46%.
Investors has lost there 70% of portfolio .

But still we say there are many undervalued stocks which can be used for investment.

To name few
2. SBI

Most of the stocks are trading near to there 52 weeks lows. There are many fundamentally strong scripts too that are trading at lower levels. One can buy and hold them.

Nifty is expected to correct bit more and after that we can say market will be bullish. As this correction was overdue reason being if we observe in past months speculated stocks whose fundamentals are zero has also shown tremendous upward rallies in the market and now again they are trading at there real values. But still investors are trapped in them and no one is sure those scripts will ever reach those highs or not.

Stock market is a ocean where there are many pearls ( here scripts) so one need to select the best one. We strongly recommend if you are not intraday trader but investor then do go through company fundamentals and then invest.

For any query feel free to contact us.


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