Cigarette Dividends Remain Strong Despite Negative Publicity
March 18 2011 - 7:35AM
Marketwired
With the markets showing signs of volatility this month, investors
are once again looking for safe havens. Investors usually count on
dividend paying stocks during hectic times in the market believing
in the company's security and real earnings power. Somewhat
ironically, one of the safest dividend investments is considered to
be in the cigarette industry. Even during the recession, while many
companies cut their dividend payments, cigarette manufacturers did
not. The Bedford Report examines the outlook for companies in the
Cigarette Industry and provides research reports on Altria Group,
Inc. (NYSE: MO) & Reynolds American Inc. (NYSE: RAI). Access to
the full company reports can be found at:
www.bedfordreport.com/2011-03-MO
www.bedfordreport.com/2011-03-RAI
Tobacco companies are experts at weathering adverse conditions.
Negative publicity has sent North American tobacco demand down in
recent years, however, cigarette companies have maintained stable
revenues by merely upping the price of cigarettes. Stable revenues
have kept profits stable, which has kept the sector's high yielding
dividends intact.
The Bedford Report releases regular market updates on the
Cigarette Industry so investors can stay ahead of the crowd and
make the best investment decisions to maximize their returns. Take
a few minutes to register with us free at www.bedfordreport.com and
get exclusive access to our numerous analyst reports and industry
newsletters.
Currently, the FDA is investigating the use of menthol in
cigarettes. Recently, an FDA advisory panel argued that consumers
think menthol flavoring offers health protection or benefits, and
menthol cigarettes are disproportionately marketed to African
Americans. Cigarette manufacturers see menthol as a growth area,
and are quick to defend their product. The tobacco industry's draft
report to the FDA acknowledges that "all cigarettes are hazardous
to health," and menthol should not be regulated differently.
Reynolds American has asked a federal court to stop the FDA from
relying on the advisory panel's recommendations.
The Bedford Report provides Analyst Research focused on equities
that offer growth opportunities, value, and strong potential
return. We strive to provide the most up-to-date market activities.
We constantly create research reports and newsletters for our
members. The Bedford Report has not been compensated by any of the
above-mentioned publicly traded companies. The Bedford Report is
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