Tobacco Stocks

tobacco stocks CVS Health Looks Healthier After Quitting Tobacco

Tobacco stocks are popular dividend stocks for many investors

Tobacco stocks are some of the most popular sin stocks. Tobacco companies like Philip Morris (PM) and Lorillard (LO) are deemed defensive consumer staples in that they won’t be going anywhere any time soon.
However, legal action against tobacco companies regarding marketing has contributed to its slow decline since the 1980s. The U.S. Food and Drug Administration continuously threatens to bans menthol cigarettes, and tobacco stocks always falter as shareholders panic. Even though the FDA has not yet followed through on its efforts to squash menthol cigarettes, it is forcing tobacco companies to packaging their products without their logos branded on the cartons.

Still, tobacco continues to grow on the international stage, and overall sales, volume and dividends of tobacco stocks will likely continue on longer than any antagonistic legislation wants. So, investors can hold onto tobacco stocks for the high distributions but will want to be wary of when the FDA will really irreparably damage Big Tobacco.

Recent Articles

CVS Health Looks Healthier After Quitting Tobacco

CVS Health will lose sales from quitting tobacco, but should make up the difference from higher-margin businesses. More 

Philip Morris vs. Altria – Only One Is a Shareholder-Friendly Spender

Tobacco stocks are no stranger to debt. But Altria at least knows how to use its debt responsibly. Philip Morris ... not so much. More 

Big Tobacco – So Much for the Global Crutch

Tobacco stocks' ace in the hole -- rising demand overseas to offset long-term decline in the developed world -- is looking less and less reliable. More 

Reynolds American and Lorillard – A Merger to Ignore

Tobacco stocks Reynolds American (RAI) and Lorillard (LO) reportedly are closer to being joined at the hip, but there's not much in it to be excited about. More 

E-Cigarettes Banned in NYC, Chicago

New rules that treat e-cigarettes the same as real cigarettes go into effect in New York City and Chicago on Tuesday. More 

Trade of the Day: Lorillard (LO)

Projected to grow 5-fold to by 2017 , the U.S. market for e cigarette brands is important but exposure to the international market is even more critical. More 

Walmart, Other Major Retailers Pressured to Stop Selling Cigarettes

The attorneys general of 28 states have written to Walmart and four other retailers asking them to end tobacco sales in their stores. More 

Tobacco Stocks: Lorillard-Reynolds Deal Likely Smoke, Not Fire

LO stock and RAI stock are up big today on M&A rumors, but the sheer size of these tobacco stocks (among other issues) makes this an unlikely marriage. More 

Altria Buys Popular E-Cigarette Brand Green Smoke

Altria will purchase Green Smoke's e-cigarette business for $110 million in cash and up to $20 million in incentive payments. More 

Can ‘Safer’ Cigarettes Save Tobacco Stocks?

Philip Morris is funneling $680 million into a factory for "safer" cigarettes, but I'm not buying the potential for tobacco stocks in such less-lethal efforts. More