SOURCE: Paragon Financial Limited

Paragon Financial Limited

June 06, 2012 08:20 ET

Strong Dividends From the Cigarettes Industry Attractive to Investors

The Paragon Report Provides Stock Research on Lorillard and Reynolds American

NEW YORK, NY--(Marketwire - Jun 6, 2012) - In times of economic uncertainty investors look to companies with strong earnings and high dividends. The Cigarette Industry has been known to have some of the safest dividends in the market. During the last recession, which saw many companies slash dividends, cigarette companies dividends held strong. The Paragon Report examines investing opportunities in the Cigarettes Industry and provides equity research on Lorillard Inc. (NYSE: LO) and Reynolds American, Inc. (NYSE: RAI).

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In the S&P 500 there are currently four cigarette companies (Altria Group, Reynolds American, Lorillard, and Phillip Morris International). The average dividend yield of these companies is nearly 5 percent, easily beating the S&P average dividend yield of 2.61 percent.

Tobacco companies continue to face taxation hikes across the U.S. as they are increasingly blamed for soaring healthcare costs. A recent proposed tax hike in California would see the excise tax jump to $1.87 per pack. Tobacco companies, such as Altria Group and Reynolds American, have spent in excess of $40 million on lobbying against the tax.

Paragon Report releases regular market updates on the Cigarettes 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 stock reports and industry newsletters.

Lorillard, through its Lorillard Tobacco Company subsidiary, is the third largest manufacturer of cigarettes in the United States. The company currently offers investors a dividend yield of around 5.01 percent. Lorillard previously reported that it has acquired all of the assets of blu ecigs, a U.S. electronic cigarette (e-cigarette) company for $135 million in cash.

Reynolds American currently offers investors a dividend yield of around 5.64 percent. The company has recently added a "Transforming Tobacco" section to the website to inform visitors about the company's strategic framework. The new section focuses on RAI's three key transformation pillars: Commercial Integrity, Tobacco Harm Reduction and Youth Tobacco Prevention.

Paragon Report provides Market 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 Paragon Report has not been compensated by any of the above-mentioned companies. We act as independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: