Albert Alfonso
Dividend investing, dividend growth investing, master limited partnerships, oil & gas

Universal Corporation: A Cheap Tobacco Stock With A Solid Yield

When I research stocks, I tend to look for cheap, dividend paying stocks with a history of dividend-growth. You may be surprised to find out that the market is full of these sorts of stocks. However, they usually have some sort of risk factor which suppresses their price. One such stock would be Universal Corporation (NYSE:UVV). Universal is cheap in terms of its PE ratio, has a healthy dividend, and has a long history of dividend-growth. However, the company is highly sensitive to commodity prices. Universal currently offers a $0.50 quarterly dividend and yields about 3.50%.

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Universal is a middleman in the tobacco sector, involved in the buying and selling of leaf tobacco. Universal...

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