Safe Haven Tobacco Stocks: Solid Returns and High Yield

The accompanying table (click to enlarge) presents the ETFI Global Tobacco Index of 29 companies over $100M [USD] market caps, which have posted a gain over the past year for the top 20 rated stocks and outpaced its benchmark ETFs. The top 20 rated stocks have an average dividend yield of 5.6% and only 11 of the 29 companies are listed for trading in the U.S.

Tobacco stocks have outperformed benchmark ETFs for the S&P 500 Index (SPY), iShares Dow Jones Select Dividend (DVY), and consumer staple funds such as the Consumer Staples Sector SPDR (XLP), Vanguard Consumer Staples (VDC), and iShares Global Consumer Staples (KXI). Also, the FTC has cleared the way for Altria's (MO) takeover of smokeless tobacco company UST, which is expected to close in early 2009.