Click on the accompanying image for a full-screen view of the 23 stocks eligible for my Global Tobacco Income Index, which includes companies with market caps greater than $200 million (USD) that pay regular cash dividends and derive the majority of their revenues from tobacco products, distribution, or supplies (such as paper). As expected, the index is dominated by large, well-known co...
Tobacco companies remain to grow revenues and widen margins since they can increase prices faster than volumes fall. In Italy (PMI's largest mkt) prices (ex tax) have risen at 5% CAGR in the last 4 years, while volumes have fallen 2%. With sales up and costs down, profit increases. In the UK, Marlboro retails at $11, and retail prices are still rising at 4% a year, in-line with wages, so affordabil...
Return, 1970-present (including dividends): 103,800% Lesson: Undeniable consumer-facing trends Regardless of how you feel about Big Tobacco, you have to admit that Altria is so successful because it runs a business built on a fundamentally consumer-driven -- and highly addictive -- product. Plenty of other great companies display similar characteristics -- Coca-Cola (NYSE: KO ) r...
About Altria Group Inc
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