Category: England

9 Biggest Tobacco Stocks

Tobacco has been a big business in the United States for more than a century. Whether you’re interested in cigars, pipe tobacco, chewing tobacco, or traditional cigarettes, tobacco stocks have been wildly profitable as well as highly controversial.

There are only a handful of tobacco stocks that trade on major U.S. exchanges, most of which have direct ties to the domestic market for cigarettes and other tobacco products. That’s not to say that foreign competitors outside the U.S. market don’t have influence over the global industry, but because of the difficulty that many investors have in investing directly in stocks whose shares aren’t found on the New York Stock Exchange or the Nasdaq Stock Market, the following nine tobacco stocks are more accessible for the average U.S. investor.

Philip Morris International (NYSE: PM)$125.4 billion192%
Altria Group (NYSE: MO)$92 billion395%
British American Tobacco (NYSE: BTI)$85.3 billion112%
Universal Corp. (NYSE: UVV)$1.57 billion176%
Vector Group (NYSE: VGR)$1.36 billion171%
Turning Point Brands (NYSE: TPB)$1.02 billion417%*
Standard Diversified (NYSEMKT: SDI)$305 million11%*
22nd Century Group (NYSEMKT: XXII)$251 million51%*
Pyxus International (NYSE: PYX)$130 million(60%)

British American Tobacco (BTI)

Largest publicly traded tobacco company in the world

British American Tobacco (BAT) is a British multinational cigarette and tobacco manufacturing company headquartered in London, United Kingdom. It is the largest publicly traded tobacco company in the world. BAT has a market-leading position in over 50 countries and operations in around 180 countries.

International Brands include DunhillKent, North State Lucky StrikePall MallVogueRothmans InternationalWinfieldState Express 555KOOL, and Viceroy.

Altria And British American: 2 High-Yield Blue Chips For A Rich Retirement

There is perhaps no more hated industry in market history than tobacco. But since 1926, no industry has delivered better total returns, and on a risk-adjusted basis, tobacco is #2.

Over the past 33 years, Altria and British American have delivered 18% and 14% CAGR total returns, respectively, “smoking” the S&P 500 while offering generous, recession-resistant and exponentially growing dividends.

Both companies have wide moat businesses, with proven track records of adapting to an endless stream of “existential” crises, which is why I recently bought both for my retirement portfolio.

From today’s valuations, 20% historically undervalued for MO and 25% for BTI, these defensive, high-yield blue chips can realistically deliver 12% to 20% CAGR and 19% to 25% CAGR total returns over the next five years, respectively.