SOURCE: The Bedford Report

The Bedford Report

January 07, 2011 08:46 ET

Cigarette Sector Dividends are Smokin'

The Bedford Report Provides Analyst Research on Altria & Philip Morris

NEW YORK, NY--(Marketwire - January 7, 2011) - Dividend paying companies are attracting a lot of attention right now. Investors usually count on dividend paying stocks during hectic times in the market believing in the company's security and real earnings power. Additionally, when interest rates get as low as they currently are, the return on dividends can far exceed that of bonds. Somewhat ironically, one of the safest dividend investments is considered to be in the cigarette industry. Even during the recession, while many companies cut their dividend payments, cigarette manufacturers did not. The Bedford Report examines the outlook for companies in the Cigarette Industry and provides research reports on Altria Group, Inc. (NYSE: MO) & Philip Morris International, Inc. (NYSE: PM). Access to the full company reports can be found at:

Analyst consensus is that interest rates are likely to stay at the current low levels for at least the first half of 2011. Federal Reserve Chairman Ben Bernanke says that he is prepared to keep rates in the range of 0 - 0.25 percent for an extended period if the unemployment numbers don't drop significantly. At the end of 2010 the unemployment rate was around 9.7 percent. These low interest rates will keep investor interest on dividend paying stocks.

Tobacco companies are continuously under strong attacks as smoking has become more socially unacceptable. The negative publicity has sent North American tobacco demand down in recent years, however cigarette companies have maintained stable revenues by merely upping the price of cigarettes. Stable revenues have kept profits stable, which has kept the sectors high yielding dividends intact.

The Bedford Report releases regular market updates on the Cigarette Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.

It's open for debate whether or not global demand for tobacco products is actually dropping. It is clear that cigarette demand in North America and parts of Europe has decreased, however demand is surging in emerging markets. As emerging economies around the world begin to see an expanded middle class, tobacco use skyrockets. The World Bank estimates that between 82,000-99,000 young people start smoking every day -- roughly 85% in countries in Asia.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at

Contact Information