SOURCE: Five Star Equities

Five Star Equities

March 21, 2013 08:20 ET

Tobacco Stocks Spike as Court Rules Against Health Warnings on Cigarette Packaging

Five Star Equities Provides Stock Research on Philip Morris International and Reynolds American

NEW YORK, NY--(Marketwire - Mar 21, 2013) - The Tobacco Industry has been renowned for their stable revenues and hefty dividends. The average dividend yield of Altria Group, Reynolds American, Lorillard, and Phillip Morris International is approximately 5.0 percent, more than double the S&P 500's average dividend yield of 2.2 percent. Five Star Equities examines the outlook for companies in the Cigarettes Industry and provides equity research on Philip Morris International Inc. (NYSE: PM) and Reynolds American, Inc. (NYSE: RAI).

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Tobacco companies have been experts in dealing with adverse conditions. Negative publicity in the U.S. has sent demand for tobacco down in recent years; however, companies have been able to maintain stable revenues by merely raising the price of cigarettes. The U.S. government has recently abandoned a series of graphic warning labels on cigarette packages after a court ruled the images violated free speech protections. The Food and Drug Administration will now be forced to redesign new labels. The proposed images were to cover the top half of cigarette packs and roughly 20 percent of print advertisements.

Five Star Equities 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.

Philip Morris International's subsidiaries and affiliates and their licensees are engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside of the USA. Its products are sold in approximately 180 countries. The company currently offers investors an annual dividend of $3.40 share for a divided yield of approximately 3.75 percent.

Reynolds American's subsidiary, R.J. Reynolds, is the second-largest U.S. tobacco company. The company's brands include many of the nation's 10 best-selling cigarettes. Reynolds American currently offers investors an annual dividend of $2.36 a share for a dividend yield of approximately 5.45 percent. Shares of the company have gained roughly 4.5 percent year-to-date.

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