So as a smoker I am naturally interested in tobacco firms. These stocks appear quite reasonably priced to me, considering their fundamentals. Many of these companies, such as Altria, British American and Imperial pay big fat quarterly dividends. For British American, I think the yearly dividend yield is somewhere around 4%.
Also, they have one unbeatable advantage: their customers are addicted and are not going to change their ways anytime soon. Also, smokers rarely of ever switch the brand they are smoking, so there's also a lot of stability in the revenue.
I also don't think vaping is a real threat to them. If it gets even bigger, big tobacco will eventually hop on this train and profit from their supreme lobbying by probably outlawing their competitors' products. Then, they can reap some big, fat margins from the liquids they're gonna sell.
Am I missing something?
Submitted December 21, 2017 at 07:52AM by Plbn_013 http://ift.tt/2Dl4kmt
