Tobacco Stock Dividends are Safe

Tobacco stocks have taken a big hit over the last 12 months but analysts think that the dividends are safe for at least a few years

Philip Gorham 29 January, 2019 | 2:28PM

 

 

Phil Gorham: Tobacco valuations have taken a big hit over the last 12 months with large-cap global players Phillip Morris International (PM) and British American Tobacco (BATS) down 30% and 50% respectively. Dividend yields are now at a very attractive range in the high single digits, and although we think dividend growth is likely to slow to the low single digits over the next few years, we do think the the dividends are safe and this represents a buying opportunity for investors. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
British American Tobacco PLC2,940.00 GBX-0.20
Philip Morris International Inc73.46 USD-1.18

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Philip Gorham  

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