Should You Give Up Tobacco Stocks?

THE WEEK: Morningstar columnist Rodney Hobson considers sin stocks - companies that divide opinion but still deliver good returns to shareholders

Rodney Hobson 9 November, 2018 | 7:02AM
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Just up the A2 from where I live is a football team infamous for its supporters’ chant: Nobody likes us, we don’t care. Despite their divisive reputation, Millwall occupy a solid slot in England’s second division and seem to thrive.

One could draw comparisons with tobacco stocks, or increasingly, plastics companies. Several listed companies that make packaging and cigarettes arouse considerable antipathy, and yet they continue to flourish.

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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
Associated British Foods PLC1,788.00 GBX-0.28Rating
Imperial Brands PLC1,573.00 GBX-0.60Rating
Smith (DS) PLC385.40 GBX1.50
Tate & Lyle PLC663.00 GBX0.82
Wetherspoon (J D) PLC1,035.00 GBX-0.38

About Author

Rodney Hobson

Rodney Hobson  is a columnist for and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.