PRICES AND DIVIDENDS
PERFORMANCE
In 2023, tobacco stocks faced headwinds. An accelerated decline in smoking volume and potential new restrictions on the sale of nicotine products weighted on investors’ minds. Tobacco stocks fared poorly compared to the S&P 500. This may be an unfair comparison because the popular index was dominated by 7 tech stocks that accounted for much of its gain.
The 5 major tobacco companies stocks declined on average -7.1%. Their generous 6.8% dividends increased the return to -.3%%. For the two years 2022-23, tobacco outpaced the S&P 500.
ANALYSTS
Several excellent financial analysts follow tobacco stocks. They provide timely information on the industry and specific stocks. The table below lists those that I follow and recommend. They also write on other investment topics that are informative and useful. While they do not forecast tobacco stocks’ future performance, their insights on investing are worth reading. This LINK will take you to a list of their reports where you can click on any report to access it on line.
Rae Maile, with the investment firm Panmure Gordon in London, covers the tobacco industry in depth. He provides a thorough discussion on “the other side of the tobacco story.” He believes that the market for nicotine products will not disappear any time soon and that efforts to remove them from the market are ill conceived. That proposed laws to limit tobacco sales will lead to unintended consequences. Whether you support tobacco use, oppose it, or are indifferent, his reports are well worth reading for a different perspective. This table below lists the dates of his reports. Panmure Gordon restricts the reports to its institutional clients. Serious followers of the tobacco industry may be able to access them through your broker or advisor.
One key report is available, and I recommend it. You can get it at this LINK.
Gene, thank you for sharing the links!
May I suggest adding Anthony's posts to your list? He has some unique insights, especially about BAT. https://substack.com/@recital