British American Tobacco (ADR)
The business model of tobacco companies is relatively flawless. These companies are selling a highly addictive substance to the general population, and this means that they can raise prices will little effect on sales.
A societal trend towards nonacceptance of tobacco has me concerned that many tobacco stocks are overvalued, however. While the business model was perfect in the mid-1900's, the general public is now aware that the product more »
Philip Morris International (NYSE: PM) had a tough second quarter, mainly due to adverse currency fluctuations. Gross revenue, after accounting for excise taxes, came in at $7.917 billion, missing the $8.17 billion consensus by a wide margin. But with almost 29% of global market share excluding the U.S. and China, and significant exposure to emerging economies where there is an increasing population of smokers, the owner of more »
The European Parliament recently approved new rules for menthol and flavored cigarettes, electronic cigarettes, and slim cigarettes. Although the rules aren't law yet, they are indicative of the trend in Europe. British American Tobacco (NYSEMKT: BTI) and Philip Morris International (NYSE: PM) will feel a pinch, but Imperial Tobacco Group (NASDAQOTH: ITYBY.PK) could feel a real squeeze if the trend continues.
British American has a material presence more »
On July 18, the world’s largest publicly-traded tobacco company, Philip Morris International (NYSE: PM), reported its earnings for the second quarter. The company missed its earnings’ estimates by $0.11, mainly due to currency fluctuations.
With the tobacco industry facing an uncertain future, the question is: What is in store for Philip Morris?
Shareholders of Philip Morris International (NYSE: PM) are not happy with its poor returns since the beginning of the year. The company’s share price has risen only 7.10%, much lower than the S&P 500’s gain of 18.70%. Recently, the company also reported sluggish second quarter earnings results. But does that mean it's a good time to buy Philip Morris? Let’s find out.
Sluggish more »
Philip Morris International (NYSE: PM), British American Tobacco (ADR) (NYSEMKT: BTI) and Imperial Tobacco (ADR) (NASDAQOTH: ITYBY.PK) are the leading cigarette and tobacco-product manufacturers in the world. In the last quarter, the enforcement of stringent laws restricting cigarette endorsement together with lagging demand due to weak economic conditions pulled down the revenue for major tobacco producers. Amid this difficult business cycle, in the following article we will analyze how British more »
Tobacco stocks are typically high dividend payers and report consistent earnings trends. Currently, with investors shifting to more aggressive stances and bidding up shares of growth companies, high-yielding equities have been left behind. In fact, the majority of dividend stocks appear to be trading below their 50-day moving averages, lagging the moderate increase in the S&P 500 average over the second quarter.
Here are four of my favorites, starting more »
Historical references show that stocks boasting a combination of high yield and robust dividend growth can outperform the overall market as well as their low yield and low dividend growth peers. These stocks generally reflect healthy earnings growth or cash flow generation that can support high yields and increasing dividend streams.
Below is a closer look at five dividend equities with dividend yields above 4% and historical five-year dividend growth more »
There’s a theory among certain investors, that a handful of industries offer “can’t miss” opportunities regardless of the economy. For many years, this theory has held true, and the tobacco industry has led the pack – but new trends suggest otherwise.
The Perfect Secular Investment
There is no industry in the world that has dealt with more controversy than the tobacco industry. The industry itself has been the subject more »
When investors think of Philip Morris International (NYSE: PM), they probably think of a fast growing emerging market tobacco giant which has been paying a consistently growing dividend since it was spun off from Altria (NYSE: MO). Its dividend per share rose from $1.54 in 2008 to $3.24 in 2012. Recently, Philip Morris declared a quarterly dividend of $0.85, bringing the forward annualized dividend to $3.40 more »
U.S. consumer confidence in May jumped to its highest level since 2007, reflecting a rebounding housing market. This may add to spending in different sectors such as alcoholic beverages, household products, and tobacco. We will review one company for each one of these sectors. Each sector has different drivers that fuel growth, so let’s concentrate on each of them.
This consumer goods giant might out-perform the market
Procter more »
Every portfolio, whether it is retirement or individual, needs to incorporate an income component. By having a few companies in your portfolio that have great yields, you are essentially locking in gains equal to the dividend yield. The best way to accumulate wealth is to simply reinvest the dividends of some of these income stocks and let them run. Tobacco companies in particular offer great yield. Let us take a more »
The tobacco industry is facing tough times as global demand of cigarettes has declined due to anti-tobacco campaigns, price increases, and an unfavorable excise tax environment.
Furthermore, strict anti-smoking government regulations all around the world, diminishing social acceptance of smoking, higher manufacturing costs, and increased expenses in sales, marketing, and distribution will keep eroding profitability.
Let’s see how three tobacco companies are facing the situation.
Philip Morris International: Leading more »
Although smoking seems old fashioned for many, big tobacco companies still seem poised to grow. Altria (NYSE: MO), Philip Morris (NYSE: PM) and British American Tobacco (NYSEMKT: BTI) offer compelling growth prospects, generating a buy consensus among analysts.
A company with a solid market position
With an industry-leading consensus annual growth rate of 11.23% expected over the next five years, Philip Morris stands as an interesting investment opportunity. Its more »
Altria Group (NYSE: MO) is a holding company that manufactures and sells cigarettes through its subsidiaries. Altria Group is the largest cigarette company and controls about 50% of the U.S. tobacco market. It operates its business through its subsidiary Philip Morris USA, which sells the world's best selling cigarette brand, Marlboro.
Dividend and growth
Altria offers a quarterly dividend of $$0.44 per share. In the last year more »
Not all investing is socially responsible investing. Sometimes you just want your investments to pay off.
Back when I was a broker, I had clients every week ask me about socially responsible investing. They'd be concerned that they put their money into companies and funds that were doing good in the world and so forth. That's fine. But sometimes investing it just a tool to promote one's more »
Philip Morris International (NYSE: PM), with its extremely loyal customers, has experienced significant growth in the past five years. Since the lowest level in 2009, its stock price has increased steadily from $33 per share to more than $96 per share. However, that doesn’t mean that the business is immune from misses.
Recently, the company announced that its first quarter profit decreased by 2% on a decline in the more »
Tobacco companies have long been a stalwart member of sin stock portfolios. There's good reason for this, and it could make these stocks a good pick for your dividend portfolio, too.
Tobacco is an addictive substance that can cause all sorts of health problems. While the industry fought these links for years, it is pretty much an accepted fact today. These ills have long led to a public more »
Cigarette stocks are notoriously high-yield, and Altria Group Inc (NYSE: MO) is certainly no exception. It has been paying 44 cents per share for the last three quarters, which annualizes to a dividend yield of 5.2%. The company has also steadily increased dividend payments over time, so it’s somewhat reasonable to expect Altria to raise its dividend even higher in the future. Altria was formed when Philip Morris more »
As I wrote in my fixedincomenow blog, two weeks ago I decided to carry on an experiment. It all started when I went to the supermarket and I was there for over an hour buying different goods, from food and beverages to cleaning items. I found myself buying brands I trusted only when I was buying beverages (both alcoholic and non-alcoholic) and packaged foods. Only for those items, and for more »
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