Sunday, October 16, 2011

Fire Safety Compliant Cigarettes: Top Tobacco Stocks


In the state of Minnesota, there is a requirement that cigarettes have to carry a Fire Safety Compliant label, which means that the cigarettes will go out after a short period of time if they are not being smoked. One investigation shows that this fire compliance doesn't necessarily work. Whether or not this type of compliance will spread across the United States is uncertain.

Certain investors, not just socially responsible investors, will avoid tobacco and cigarette stocks due to health concerns. However, many investors like the high yields of these stocks.

One example is Lorillard, Inc. (LO) which has a dividend payout of 4.4%. The stock, which markets the Newport, Kent, True, Maverick, Old Gold, and Max brands, trades at 14 times forward earnings. According to WallStreetNewsNetwork.com, there are over half a dozen tobacco stocks with yields in excess of 4%.

Another example is Vector Group Ltd. (VGR), 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 19, and pays a yield of 9.1%.

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 14, and pays a yield of 5.4%.

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 13, and pays a yield of 5.9%.

For a free 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 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

1 comment:

Farhan said...

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