Warning: Cigarettes May Be Good For Your Financial Health

Cigarette stocks are smoking, but are they good for your financial health? Last year, all the major tobacco companies were up, and a couple of them, Gallaher Group plc (GLH) and Carolina Group (CG), were up over 50% for the year.

In addition, all the big cigs pay dividends of over 2%. Here is the list sorted by highest yield first:

Vector Group Ltd. (VGR): 9% yield, based in Miami Florida, Brands include: Liggett Select, Eve, Jade, and Quest.

Reynolds American Inc. (RAI): 4.7%, Winston-Salem, NC; Camel, Winston, Kool, Salem, Doral, More, and Now.

Altria Group Inc. (MO): 3.9% headquarters in New York City; owns Kraft Foods, Philip Morris USA, Philip Morris International and Philip Morris Capital Corporation.

British American Tobacco plc (BTI): 2.9%, based in London; Kent, Dunhill, Lucky Strike, Pall Mall, Vogue, Viceroy, Rothmans, Kool, Benson & Hedges, State Express 555, Peter Stuyvesant, and John Player Gold Leaf.

Gallaher Group plc [GLH]: 2.8%, based in United Kingdom; Benson & Hedges, Hamlet, LD, Mayfair, Memphis, Old Holborn, Ronson, Silk Cut, Sobranie and Sovereign.

Carolina Group [CG]: 2.7%, New York based; Kent, True, Maverick, and Old Gold.

Disclosure: Author does not currently own any of the above stocks.