Indeed Philip Morris has raised its payout every year since it was spun-off to be an independent company in 2008. The current yield is 4.8%, the lowest on this list, but is still more than three times that of the S&P 500. Companies now looking to phase out traditional products and replace them with healthier, lower-risk alternatives opens the tobacco industry to new players. The tobacco industry produced some of the 20th century’s best performing stocks.
Philip Morris Intl (NYSE:PM)
You can read more about our editorial guidelines and the investing methodology for the ratings below. F stock has a price-to-earnings-growth (PEG) ratio of 0.56x, suggesting a growth-at-a-reasonable price (GARP) opportunity has emerged. Moreover, F stock has a price-to-sales ratio of only 0.22x, implying that it is a grossly undervalued stock. Numerous consumer discretionary stocks have been oversold amid growing economic uncertainty, while consumer defensive stocks are defensive plays that can protect against a volatile economy.
High-Yield Tobacco Stocks: Philip Morris International (PM)
Rather than buying the shares of individual companies, diversify your exposure to consumer discretionary stocks by choosing a sector exchange-traded fund (ETF) or index fund. The Consumer Discretionary Select Sector SPDR Fund (XLY), for instance, gives you exposure to the entire sector for a low expense ratio of only 0.12%. The market leader in luxury electric vehicles and an emerging player in solar power, Tesla’s growth in recent years has been incredible. While recent supply chain challenges have kept the company from meeting production guidance, the company continues to report very strong quarterly earnings.
Financial Calendars
- On the bottom line, the company’s margin expanded, with organic gross profit increasing 13.7% to $5.6 billion, while organic operating income jumped 22.2% to $2 billion.
- The Consumer Discretionary Select Sector SPDR Fund (XLY), for instance, gives you exposure to the entire sector for a low expense ratio of only 0.12%.
- Get Forbes Advisor’s expert insights on investing in a variety of financial instruments, from stocks and bonds to cryptocurrencies and more.
- Finally, Silvercrest Asset Management Group LLC increased its holdings in shares of British American Tobacco by 0.7% in the first quarter.
- A well-constructed portfolio might include a mix of these high-yield stocks, along with a handful of high-yield dividend exchange-traded funds.
STZ stock has dipped by about 8% in the past twelve months, placing its forward price-to-earnings ratio at 18.15x, which I consider low for a consumer staples stock. STZ stock’s forward dividend yield of 1.64% also provides a welcoming add-on. Philip delivered strong growth in the first quarter, with organic revenue up 11% to $8.8 billion and overall shipment volume growth of 3.6% to 180.5 billion units. Cigarette shipments declined just 0.4% to 143.2 million, and the company posted strong growth in smoke-free products. Heated tobacco units rose 20.9% to 33.1 billion, and oral smoke-free products increased 35.8% to 4.2 billion.
Are Tobacco Stocks Worth Buying?
Founded by Bernie Marcus and Arthur Blank in 1979, Home Depot started out with two warehouse stores in Atlanta. Since then, HD has grown to more than 2,200 stores in three countries. The company remains committed to serving do-it-yourself (DIY) consumers, selling everything from tools and building supplies to gardening materials and home appliances.
Universal said it would see higher earnings-per-share for this year, so we predict $4.35 in earnings-per-share, which would be slightly ahead of the $4.25 produced in the prior year. Universal was founded in 1886, generates about $2 billion in annual revenue, and trades with a market capitalization of $1.3 billion. In addition, Altria’s current yield is massive at 7.2%, roughly six times that of the broader market. Altria has an exemplary dividend history, having boosted its dividend for more than half a century consecutively, and qualifying it for the coveted title of Dividend King.
A well-constructed portfolio might include a mix of these high-yield stocks, along with a handful of high-yield dividend exchange-traded funds. Such an approach would provide a healthy balance of income, growth potential, and diversification. Ford (F 3.69%) sports a 5.36% dividend yield with an exceptionally https://investmentsanalysis.info/ low forward P/E of 5.77. The automaker is investing heavily in electric-vehicle (EV) technology while maintaining its strong position in traditional combustion-engine vehicles. Firstly, the firm’s robust market positioning and exposure to the consumer staples sector can protect against an economic decline.
This highlights the financial strength of these companies, as they generate more cash than they currently need to reinvest. British American Tobacco p.l.c. engages in the provision of tobacco and nicotine products to consumers worldwide. It also offers vapour, heated, and modern oral nicotine products; combustible cigarettes; and traditional oral products, such as snus and moist snuff.
Engages in the provision of tobacco and nicotine products to consumers worldwide. Universal Corporation stock opened the day at $49.80 after a previous close of $49.70. Universal Corporation is listed on the NYSE, has a trailing 12-month revenue of around USD$2.7 billion and employs 10,800 staff. Philip Morris’ earnings Best tobacco stocks growth history has been spotty, with earnings-per-share in 2011 coming in higher than that of 2017, for instance. However, one thing that hasn’t wavered for the past 13 years is the company’s ability to raise its dividend. RLX Technology Inc is engaged in the manufacturing of e-vapor products for adult smokers.
Universal Corporation engages in sourcing, processing, and supplying leaf tobacco and plant-based ingredients worldwide. It operates through two segments, Tobacco Operations, and Ingredients Operations. Top stocks have consistently paid attractive dividends while offering share-price appreciation. Knowledge of the adverse effects of smoking, changing consumer tastes and increased regulations all contribute. Tobacco stocks are widely prized by income investors thanks to their high dividend yields, stable payouts and dividend increase streaks.
Leave a Reply