All you tree huggers, vegans, health nuts and wackos, take your best shot. I live in the Carolinas and want to bring an investment opportunity to your attention. This morning I was screening on Barchart for the S&P 500 stocks that were hitting the most frequent new highs in the last month, and Lorillard (NYSE:LO) floated to the top. I know cream rises to the top and something else floats and sometimes you can't tell the difference. This stock's steady and current dividend of 5.30% and 18 new highs in the last month cannot be ignored. The momentum is there.
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- 96% Barchart overall technical buy signal
- Trend Spotter buy signal
- Above its 20, 50 and 100 day moving averages
- 18 new highs and up 15.14% in the last month
- Relative Strength Index 88.03% and rising
- Trades around 113.99 with a 50-day moving average of 98.47
- Tobacco products are cash cows and cannot be ignored by income investors.
- Wall Street brokerage analysts have released one strong buy, four buy and five hold recommendations for their clients.
- Sales are projected to increase by 10.30% this year and another 5.10% next year.
- Earnings increase estimates of 13.30% this year, 9.60% next year and 9.50% annually for the next five years.
- When I see a company paying a 5.30% dividend and sales and earnings projections above 5.00% I feel the dividend is secure.
- On Motley Fool 454 readers venture an opinion on the issue.
- CAPS members vote 310 to 17 that the stock will beat the market.
- The more experienced All Stars also vote in the same direction with a 120 to 7 vote.