SOURCE: The Bedford Report

The Bedford Report

September 13, 2011 08:16 ET

Regulatory Headwinds Fail to Shrink Cigarette Dividends

The Bedford Report Provides Equity Research on Altria & Philip Morris

NEW YORK, NY--(Marketwire - Sep 13, 2011) - Despite an onslaught of possible new regulation, cigarette manufacturers continue to pay some of the most stable dividends on Wall Street. While negative publicity has sent North American tobacco demand down in recent years, cigarette companies have maintained stable revenues by upping the price of cigarettes. The Bedford Report examines the outlook for companies in the Cigarette industry and provides investment research on Altria Group, Inc. (NYSE: MO) and Philip Morris International, Inc. (NYSE: PM). Access to the full company reports can be found at:

Currently US cigarette manufacturers are in a heated battle with the FDA regarding the regulators ruling that graphic images such as rotting teeth, the corpse of a smoker and a diseased lung take up the top half of the front and back of all cigarette packs by September 2012. Some of the nation's largest tobacco companies sued last month to block the labels, questioning their constitutionality and saying that changing cigarette packaging will cost millions of dollars.

The FDA argues that the financial costs to the companies of switching to incorporate the new graphics equals about one-tenth of their annual net sales.

The Bedford Report releases stock research 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.

Stable profits are pivotal to a company maintaining strong dividend payments. Recently Altria reaffirmed its 2011 adjusted EPS outlook of $2.01-$2.07, representing a growth rate between six and nine percent. Altria Group presently pays an annual dividend of $1.64 a share for a hefty yield of around 6.1 percent.

Philip Morris pays an annual dividend of $2.56 for a yield of around 3.9 percent. During the second quarter Philip Morris' net revenues grew 17.2% year over year to $8.3 billion.

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