In the last couple of weeks two tobacco companies raised their dividends significantly. Reynolds American and Lorillard raised their dividends 8.2% and 16.0% respectively. I take this as meaning both these companies are confident of their business prospects. In the case of Lorillard they were doing some pre-damage control just in case the FDA decided to put some restrictions on menthol usage in cigs.
In any case these actions continue to make the point that investing in tobacco is a good approach for those looking for stocks that pay excellent dividends. Also noteworthy is the fact despite some weakness of late in the market, tobacco stocks have held up well.
I continue to recommend MO, RAI, and for those who are willing for some more risk LO.
I am either long or hold options in all three securities above.
For those of you who are my readers and are newspaper employee friends I am working on a posting for later this week that will likely rattle some cages.
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