High-Yield Tobacco: Relative Quality

Jul. 07, 2025 1:54 AM ET, , , , , , , ,
Thomas Prescott
1K Followers

Summary

  • With recent market highs and no shortage of thrills, some investors might be ready to turn the excitement down a notch or two.
  • Tobacco companies often pay high dividend yields backed by decades of proven reliability supported by durable revenues.
  • Six tobacco companies were evaluated using a relative quality matrix with factors including yield, payout ratio, value, profitability, growth, and leverage.
  • Based on this analysis, Altria and Japan Tobacco Inc. appear to be the most favorable prospects.
  • Further, investors should consider the relative quality matrix as guidance for their own comprehensive analysis.

social problems of smoking, the concept of concentration on the dangers to health, social advertising against smoking

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Background

The S&P 500 has reached several new highs recently, but I suspect some investors are not feeling 100% optimistic. Regardless of the exact provisions of the BIG BEAUTIFUL BILL, notwithstanding whether Elon Musk is deported or not, setting aside

This article was written by

1K Followers
I most often base my analysis on company fundamentals, industry specific data, and broader economic trends. I read company quarterly presentations, but very rarely cut and paste presentation content and include it with my analysis. Those presentations are put together specifically to present company data and results in the most favorable way limited only by SEC regulations. I have not seen a single company presentation advising investors to sell.I sometimes work with fellow Seeking Alpha author Badsha Chowdhury.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in MO, JAPAY, IMBBY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Related Stocks

SymbolLast Price% Chg
MO--
Altria Group, Inc.
BTI--
British American Tobacco p.l.c.
IMBBY--
Imperial Brands PLC
JAPAY--
Japan Tobacco Inc.
PM--
Philip Morris International Inc.

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