Top Alcohol and Tobacco Stocks With Strong Cash Flow and Dividends

Erick Parnell of Gerring Wealth Management reports today on five so-called “sin” stocks, meaning companies whose primary business is selling alcohol and tobacco.  I decided to take a closer look at these companies.  One of the key attractions of these companies is their strong cash flows and healthy dividend payments.

  • Altria (NYSE:MO):  The shares have traded in a 52-week range of $19.53 to $28.13 and have most recently traded at $26.74.  Its market capitalization is $56 billion. The company pays a dividend of $1.52 per share, for a yield of 5.7%.    About the company:  Altria Group, Inc. is a holding company. The Company, through subsidiaries, manufactures and sells cigarettes and other tobacco products, including cigars and pipe tobacco. Altria holds an interest in a brewery company. Competitors to Watch: Lorillard, Inc. (NYSE:LO), Philip Morris International Inc. (NYSE:PM), Reynolds American Inc. (NYSE:RAI), British American Tobacco (AMEX:BTI), and Vector Group Ltd. (NYSE:VGR).
  • Phillip Morris International (NYSE:PM): The shares have traded in a 52-week range of $45.54 to %71.75 and most recently traded at $65.52.  Its market capitalization is $116.52 billion.  The company pays a dividend of $2.56 per share, for a yield of 3.9%.  About the company:  Philip Morris International Inc., through its subsidiaries, affiliates and their licensees, produces, sells, distributes, and markets a wide range of branded cigarettes and tobacco products in markets outside of the United States of America. The Company’s portfolio comprises both international and local brands. Competitors to Watch: Lorillard, Inc. (NYSE:LO), Altria Group, Inc. (NYSE:MO), Reynolds American Inc. (NYSE:RAI), British American Tobacco (AMEX:BTI), and Vector Group Ltd. (NYSE:VGR).
  • Reynolds American (NYSE:RAI): The shares have traded in a 52-week range of $25.62 to $39.87 per share, and most recently traded at $37.19.  Its market capitalization is $21.68 billion.  It pays a dividend of $2.12 per share, for a yield of 5.7%.  About the company:  Reynolds American Inc., through its subsidiaries, manufactures tobacco and smokeless tobacco products. The Company’s subsidiary sells its products in the United States and its territories. Competitors to Watch: Anheuser-Busch InBev (NYSE:BUD), Boston Beer Company (NYSE:SAM), Craft Brewers Alliance (NASDAQ:HOOK), Companhia de Bebidas das Americas (NYSE:ABV), Constellation Brands, Inc. (NYSE:STZ), and Diageo plc (NYSE:DEO).
  • Molson Coors (NYSE:TAP): The shares have traded in a 52-week range range of $41.88 to $51.11 and most recently traded at $4.58 per share.  Its market capitalization is $8.34 billion.  It pays a yield of $1.28 and has a yield of 2.9%.  About the company:  Molson Coors Brewing Company brews beer through breweries in Canada, the United States and the United Kingdom. The Company conducts operations worldwide. Competitors to Watch: Anheuser-Busch InBev (NYSE:BUD), Boston Beer Company (NYSE:SAM), Craft Brewers Alliance (NASDAQ:HOOK), Companhia de Bebidas das Americas (NYSE:ABV), Constellation Brands, Inc. (NYSE:STZ), and Diageo plc (NYSE:DEO).
  • Brown Foreman (NYSE:BFB): The shares have traded in a 52-week range of $54.25 to $74.57 and have most recently traded at $73.73.  Its market capitalization is $10.69 billion.  It pays a dividend of $1.28 per share, for a yield of 1.7%.   About the company: Brown-Forman Corporation manufactures, bottles, imports, exports and markets a variety of alcoholic beverage brands. Its principal beverage brands include Jack Daniel’s Tennessee Whiskey, Early Times Kentucky Whisky, Jack Daniel’s Single Barrel, El Jimador Tequila, Jack Daniel’s Ready-to-Drinks, Fetzer Wines, Gentleman Jack, Five Rivers Wines, Southern Comfort, Herradura Tequila, Southern Comfort Ready-to-Drinks, Jekel Vineyards Wines, Southern Comfort Ready-to-Pours, Korbel California Champagnes, Finlandia Vodka, Little Black Dress Wines, Antiguo Tequila, New Mix Ready-to-Drinks, Bel Arbor Wines, Old Forester Bourbon, Bonterra Vineyards Wines, Pepe Lopez Tequilas, Canadian Mist Blended Canadian Whisky, Sanctuary Wines, Chambord Liqueur, Sonoma-Cutrer Wines, Don Eduardo Tequila, Tuaca Liqueur, Early Times Bourbon and Woodford Reserve Bourbon. The Company’s principal brand in its portfolio is Jack Daniel’s, which is a spirits brand.

(Note: Selected financial data are sourced from Yahoo! Finance.   All data are assumed to be accurate.)

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