What are Sin Stocks?

Put your ethics to one side because these so called 'sin stocks' are delivering big profits and paying out healthy dividends

Emma Wall 17 October, 2013 | 2:41PM
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Read more on ethical and sustainable investing in Morningstar's Ethical Investing Week 2013.

Ethical investment may have the moral high ground but there are certain not-so-nice companies that rake in the cash from sinful enterprise.

Sin stocks, as they are called, are the sort of companies that would not pass the stock screening of an ethical fund. These sectors include alcohol, animal testing, tobacco, oil and armament firms. They can also include companies that are involved in human rights issues, nuclear energy development, intensive farming and even in some cases the use of fur. Companies that kick out large carbon omissions are also on the sin list. 

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
British American Tobacco PLC2,599.00 GBX0.23Rating
Diageo PLC3,615.50 GBX-0.65Rating
Flutter Entertainment PLC14,620.00 GBX2.06
Franklin UK Equity Income A Acc  
Imperial Brands PLC1,570.50 GBX0.61Rating
Las Vegas Sands Corp40.10 USD-0.67Rating
LVMH Moet Hennessy Louis Vuitton SE666.70 EUR-0.19
Philip Morris International Inc98.37 USD-0.49Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar