5 Smoking Hot Tobacco Stocks to Buy Now

Steady dividend income drives these stocks to your portfolio

   
5 Smoking Hot Tobacco Stocks to Buy Now

Tobacco stocks are smoking hot investments right now, but not because there’s any resurgence in cigarettes. Rather, the big dividend yields from tobacco companies – sometimes north of 5% annually – means steady income. And with a “loyal” customer base of addicted cigarette smokers, the revenue is steady as can be for these picks.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve found five tobacco stocks to light up and buy.

Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.”

Altria Group (NYSE:MO) has a dividend yield of 5.2% right now. Altria is a holding company that owns Philip Morris USA. In the last year, Altria stock is up 22%, compared to a gain of 4% for the Dow Jones in the same time. Altria stock gets a “B” grade for earnings momentum, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity. For more information, view my complete analysis of MO stock.

British American (NYSE:BTI) has a dividend yield of 3.9% right now. BTI is another holding company on the list and owns Dunhill, Kent, Lucky Strike and Pall Mall. Since last April, BTI stock has climbed 19%. BTI stock gets a “B” grade for the magnitude in which earnings projections have increased over the past months and a “B” grade for cash flow. For more information, view my complete analysis of BTI stock.

Lorillard (NYSE:LO) has a dividend yield of 4.6% right now. Lorillard is best known for its Newport brand of menthol cigarettes. Lo has posted a yearly gain of 18%. LO stock gets a “B” grade for earnings growth, a “B” grade for earnings momentum, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street and a “B” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of LO stock.

Philip Morris (NYSE:PM) has a dividend yield of 3.6% right now. PM sells its tobacco products in 180 countries across the globe. PM stock has gained 27%, compared to smaller gains by the broader markets. PM stock gets a “B” grade for earnings momentum, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity. For more information, view my complete analysis of PM stock.

Reynolds American (NYSE:RAI) has a dividend yield of 5.7% right now. Reynolds is another holding company that owns several smokeless tobacco companies. In the last 12 months, RAI stock has climbed 9%. RAI stock gets an “A” grade for return on equity. For more information, view my complete analysis of RAI stock.

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

 


Article printed from InvestorPlace Media, http://investorplace.com/2012/04/5-smoking-tobacco-stocks-to-buy-now-mo-bti-lo-pm-rai/.

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