Are tobacco stocks ultimately doomed due to an ever-increasing worldwide health consciousness or will there always be enuf smokers to profit?

Question

I like the fat dividends they're paying. 

Answer 1

instead of investing in tobacco why not try forex trading and make good profit in just days with Annie Fox on Facebook

Answer 2

Plenty of smokers and good dividends.   Now they are all getting into marijuana.  Make a fortune while America goes brain dead.  "Ever increasing wordwide health consciousness".  You're joking, right?  btw.  The reason a pack costs $7 is to pay all the dirty lawyers who sued years ago.  Many State Attorney Generals joined that suit with the promise the law firm would later hire them and make them millionaires.   

Answer 3

This story has been around since I started following the market many years ago. The tobacco industry has an unsual approach. Every year as the volume of sales decreases due to health reasons, they raise the price of cigarettes to make up the difference, and people pay the price. Around 1950, my mother used to give me a quarter to go to the store for her and buy her cigarettes and I could keep the three cents change. 70 years later, a pack in my state, Connecticut, cost well over $10. That certainly beats the rate of inflation. Tobacco companies still make a strong profit and pay an above-average dividend.

Answer 4

Lots of poorer countries didn't join the world health organisation in combating smoking, many Eastern Europeans still smoke, so they will still make money and kill them.

Answer 5

i own one, that focuses on smokeless and is growing nicely. Small div but a growth story.

TPB

Cig smokers will slowly decline over many years. So they may be able to pay out a lot of dividends.

Answer 6

Check the businesses the particular company expanded into.

Cigarette retail prices are all taxes and marketing and a bit in distribution costs. The actual cost to produce a pack is under $0.50. Marlboro is Philip Morris USA, is a division of Altria. plus U.S. Smokeless Tobacco Company, John Middleton, Ste. Michelle Wine Estates and Philip Morris Capital Corporation, Black & Mild, Copenhagen and Skoal. 80 percent interest in Helix Innovations and equity investments in Anheuser-Busch InBev SA/NV, JUUL Labs, Inc. and Cronos Group. 

$372 million for Helix Innovations is formerly Burger Söhne Holding GmbH.

Cronos Group is Canadian Cannabis (Marijuana) $1.8 billion investment. Altria owns 45% now, losing money so far worth $1.15 billion.

I think RJ Reynolds Tobacco was a split from RJR Nabisco and Nabisco went to Mondelez.

RJR is a standalone and probably needs diversification.

China Tobacco is government of China owned, and is actually the largest tobacco company in the world.

BAT British American Tobacco bought RJRT

Trades on a few stock exchanges. NYSE as BTI with a 7.5% yield. It's an OK investment as undervalued and stable, but future earnings not expected to grow much unless they diversify more.

  

Answer 7

The tobacco companies have diversified and probably receive only a fraction of their income from tobacco.

Answer 8

Altria has been paying a great dividend for Generations(given the split/separation). I have made a killing on them for Years. Don't much care about the 'smoking is bad' crap-I make money on it.