The tobacco industry has delivered solid returns over the long run despite facing plenty of challenges along the way.
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...
Stock buybacks, also known as share repurchases, occur when companies buy shares of their own stock to reduce the number of shares outstanding.
Stock buybacks can be used to offset stock issued to employees as compensation, or to improve earnings per share by reducing the number of shares by which earnings are divided. Sometimes, companies repurchase stock simply because they believe their shares are undervalued.
Buyback proponents say they reward these long-term shareholders by effectively increasing their ownership of the company, and they help boost the value of a stock by raising the company's earnings per share. And when there's no other compelling use for a company's cash, this is a better alternative than risky spending on takeovers or other big investments.
But the other view on buybacks is that — like the restaurant removing tables — their only impact is in making things look better than they seem. Yes, earnings per share rise, but that's not because earnings are growing. Even their fiercest proponents — somewhat hypocritically — say they're overused.
With that in mind, I've compiled all stocks with a billion dollar buyback announcement during the year 2016. In total, there are exactly 82 companies with such a big share buyback volume.
Here are the results...
When you purchase individual stocks, risk is inherent. Sometimes bad things happen to good stocks. Eventually, every investor will hold a stock that falls out of favor and endures a double-digit decline. Understanding this from the onset makes it easier to deal with. To minimize the risk of significant declines, your core portfolio should focus on blue-chip dividend growth stocks.
Listed below are companies that have recently elected to raise their payout and yield by increasing their cash dividends to shareholders. In total, there were 28 companies with higher dividend payments.
Each month, I’ll be sharing with you, for free, the top dividend growth stocks for the US market. You can find them in the list below:
Sometimes, when we try to have our cake and eat it, too, life comes back to bite us. Or, in this case, the market comes back to bite us. Such was the case this year for investors who bought growth stocks that also offered up dividends.
We are looking for the Worst Stocks for 2016. In these times of market turbulence, it’s our job to watch out for the worst investments that can sink your portfolio.
Our search is not merely limited to the worst stock in the Dow or S&P.
Below you will find the 20 worst performing dividend paying stocks for the year 2016. Sometimes you will find there really attractive bargains. Oversold companies with a big group of short seller.
Those could be really great investing opportunities. Heathcare stocks is the worst performing group. I like GILD, AMGN, NVO and AZN. Which do you like from the list?
These are the 20 worst performing large cap dividend paying stocks....
With the markets warming up to the reality of a Donald Trump presidency and administration, some people have become nervous about dividend-paying stocks as they see higher interest rates and inflation ahead.
While the bond proxy sectors like real estate investment trusts and utilities may hold less appeal as they are very slow growers, other sectors like consumer staples and telecoms still make sense since they can continue to grow market share.
We screened the Merrill Lynch research database for stocks with the firms best volatility rating, and solid growing dividends that were rated Buy. We found five that growth and income investors could buy now, and put in their portfolios forever.
What investors will want to not ignore is that some of these are still well off of highs. The post-election rally has been targeting many infrastructure and higher interest rate winners, so some of these may be overlooked.
These are the results...
