Between litigation, regulation, taxation, health concerns, and changing consumer preferences, the world's largest producers and marketers of cigarettes and other tobacco products have had to change gears in order to adapt to the new environment in the industry.
However, many tobacco stocks have outperformed the S&P 500 over the past year due to the popularity of high-yielding dividend stocks in a low interest rate environment.
Meanwhile, the profitability of many tobacco companies improved as they used higher prices, cost cutting measures, and buybacks to offset weaker sales. Therefore, investors should be familiar with three of the top names in the industry.
Attached I've compiled some of the best names from the industry. For sure, there is not much competition. Market consolidatioin and strong market entry barriers are have created such a low competitor branch.
Here is my compilation of the best tobacco stocks...
|The best tobacco stocks on the market |
(click to enlarge)