Tobacco Stocks Smoking the Overall Market

Global Tobacco Index: Smokin' Performance

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Top 5 Companies by 1-Year Stock Gain

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Top 5 Companies by Market Cap

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The tobacco industry is smokin' the overall market and benchmark funds over the past year, thanks to news today that Altria (MO) is looking to buy smokeless tobacco company UST, Inc. (UST) for about $10 billion, and defensive buying by investors as economic uncertainties have dragged down the overall market the past few days. Another notable mover is Star Scientific (STSI), which has vaulted to gains of over 260% during the last year on a successful appeal for a patent infringement lawsuit against Reynolds American (RAI). The ruling opens the door for a possible legal settlement or the case will proceed to a trial.

A total of 25 companies are included in the Global Tobacco Index profiled in the accompanying tables with companies valued at over $200 million US Dollars. The Top 20 active companies are chosen by a rating system as equally-weighted components in the index. The Global Tobacco Index outpaced the S&P 500 ETF (SPY), along with the following benchmark funds: iShares Global Consumer Staples (KXI), Vanguard Consumer Staples (VDC), Consumer Staples Sector SPDR (XLP), and iShares Dow Jones Select Dividend (DVY). Only the Select Dividend ETF has a higher yield than the 4.1% average for the Global Tobacco Index, but DVY is down 23.9% over the past year which more than offsets its high 4.9% yield.