NEW YORK, NY -- (Marketwire) -- 05/04/12 -- Dividend paying companies have gaining popularity in the markets in 2012. With interest rates as low as they are investors are looking at dividend paying stocks for investment income, where returns currently far exceed those of bonds. The Cigarette Industry has been home to some of the safest dividend investments in the market. Even during the recession, when many companies slashed dividend payments, cigarette manufacturers did not. Five Star Equities examines the outlook for companies in the Cigarettes Industry and provides equity research on Reynolds American, Inc. (NYSE: RAI) and Vector Group Ltd. (NYSE: VGR).
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. With stable profits cigarette companies have been able to keep their high yielding dividends intact.
A proposed law in Australia may prevent a new challenge for the tobacco industry. The Australian government wants impose the first ever ban of logos on cigarette packs. The proposed law would see cigarettes sold in dark olive-brown packages, with graphic images of diseases caused by smoking replacing corporate logos. Countries such as New Zealand, Canada, Belgium, Iceland, and France have all expressed interest in adopting a packaging law like Australia.
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 www.FiveStarEquities.com and get exclusive access to our numerous stock reports and industry newsletters.
Reynolds American Inc. is the parent company of R.J. Reynolds Tobacco Company, which is the second-largest U.S. tobacco company. The company's brands include many of the best-selling cigarettes in the U.S.: Camel, Pall Mall, Winston, Kool, Doral, and Salem. Reynolds American currently offers investors an annual dividend of $2.24 per share, or a yield of 5.51 percent.
Vector Group, a holding company that operates in tobacco and real estate, currently offers investors an annual dividend of $1.60 per share, or a yield of 9.31 percent. The company recently announced that they will conduct a conference call and webcast to discuss first quarter 2012 results on Friday, May 4, 2012 at 11:30 a.m. (ET).
Five Star Equities 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. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:
Five Star Equities