Outlook is fairly positive. You have to look at tobacco stocks in an environment where usage is declining. A shrinking business. Every few years they pay out a big dividend.
The best thing with this is that you get the chance of special dividends. It's a cash flow machine and you get a nice fat yield now with a chance of a special dividend every 2 or 3 years.
Tobacco is a vile product, is the best business in the world to be in. No business earns returns that tobacco does. Basically a cash machine. 5% yield. Every few years issues a special dividend. This is one you can Buy and Hold.
A great dividend story. Buying back shares. Fantastic cash flow growth. If you're nervous about the market, this is a great company to own. Their private label brands were hurting their premium brands and margins were suffering. They turned that around and cut their costs and increased dividends.
If they got pounded down really hard, and got under $20 it might be a trade. For the longer haul the demographics are against it. Huge cash flows and have been buying back their stocks.
Looked at it a couple of years ago, but what was bothering him where the private-label brands eating into their main brand, so margins have been compressed. A massive free cash flow business. Fantastic dividend.
The tobacco sector is acting particularly well. Very stable cash flows. There are always litigation risks. Should continue well even in a slowing economy.
Had a lot of excess cash, paid out a special dividend and it is now taking awhile to build out. Basically a snooze fest until they announce something giving a bit of a yield. No growth.
Tremendous dividend. There are a couple of problems. Has a litigation risk. The private, lower margin brands are eating into their core brand strategy. Also contraband is starting to impact their profits. Great cash flow business.
Under legal attack, starting off with British Columbia but kind of spreading out across the country. Likes to wait until the lawsuits are well on their way and almost through and then buy.