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Seeking Income? 3 High Yield Stocks Worth a Look
ZACKS· 2025-04-10 22:00
Group 1: Dividend Overview - Dividend-paying stocks provide a passive income stream and are generally less volatile, making them attractive in the current market landscape [1][8] - High-yield stocks, such as Verizon Communications, Philip Morris, and Walgreens Boots Alliance, are highlighted as potential investment options [2] Group 2: Philip Morris (PM) - Philip Morris shares have seen a 14% growth in EPS and a 7% increase in sales, driven by strong demand and innovations in its smoke-free business [4] - The smoke-free products exceeded 40 billion units for the first time in FY24, with net revenues increasing by 14.2% and gross profit rising by 18.7% [5] - The current dividend yield for PM is 3.5%, and the company is recognized as a member of the elite Dividend Kings group [5] Group 3: Verizon Communications (VZ) - Verizon is a leading telecommunications company in the U.S., providing various services to consumers and businesses [7] - The company's earnings outlook has improved, with analysts raising EPS expectations, and it has strong cash generation, making it appealing to income-focused investors [9] - Verizon's FY24 free cash flow is projected at $19.8 billion, reflecting a 6% year-over-year growth, with a current dividend yield of 6.3% [10] Group 4: Walgreens Boots Alliance (WBA) - Walgreens Boots Alliance is a retail drugstore chain, and analysts have recently become bullish on its EPS outlook, resulting in a Zacks Rank 2 (Buy) [12] - The stock's annual yield has risen to approximately 9.3%, significantly higher than the market average, despite past weak performance [14] - WBA shares have bounced back in 2025, gaining nearly 15% and showing relative strength compared to the S&P 500 [14]
22nd Century Revenue Growth from Continued Expansion of CMO Volume with New Filtered Cigar Agreements
Globenewswire· 2025-04-09 12:25
Core Insights - 22nd Century Group, Inc. has announced the execution of two new agreements to supply filtered cigar products, expanding its customer partnerships and production capabilities [1][3][4] Group 1: Business Expansion - The company is increasing production of filtered cigars, with initial shipments expected in Q2 2025, targeting an annual volume of 500,000 cartons or more [2] - The new agreements are designed to provide gross margin and consistent volume, reinforcing the company's core CMO business [3] - These agreements build on previous momentum from Q3 2024, indicating a strategic focus on expanding the footprint of its VLN brand through established retail channels [4] Group 2: Product Offering - The flagship product, VLN cigarettes, contains 95% less nicotine than traditional cigarettes, aiming to help smokers control their nicotine consumption [5][7] - The proprietary reduced nicotine tobacco blends are developed using patented technologies, ensuring a unique position in the market with the only low nicotine combustible cigarette in the U.S. and critical international markets [7] Group 3: Manufacturing Capabilities - The company operates a 60,000 square foot facility in Mocksville, North Carolina, capable of producing over 45 million cartons of combustible tobacco products annually, with room for expansion [6]
3 No-Brainer Dividend Growth Stocks to Buy Right Now
The Motley Fool· 2025-04-09 08:05
Core Viewpoint - The article emphasizes the resilience of Philip Morris International, S&P Global, and Walmart as investment options amidst market volatility and tariff concerns, suggesting that investors should focus on dividend growth stocks that are insulated from economic downturns [1][2]. Philip Morris International - Philip Morris International (PMI) was spun off from Altria in 2008, allowing it to focus on its overseas business while Altria dealt with domestic challenges [3]. - From 2008 to 2024, PMI's adjusted earnings per share (EPS) grew at a compound annual rate of 4.4%, driven by price increases and cost-cutting measures, alongside a shift towards smoke-free products [4]. - PMI has consistently raised its dividend since the split, currently offering a forward yield of 3.6% with a trailing payout ratio of 88%, indicating potential for future increases [5]. - Analysts project adjusted EPS growth of 9% in 2025 and 10% in 2026, with a reasonable valuation at 21 times forward earnings [5]. S&P Global - S&P Global provides essential financial data and analytics services to approximately 80% of Fortune 500 companies, utilizing AI-driven tools to enhance its offerings [6]. - The company is insulated from tariffs as it offers services rather than physical goods, making its services more valuable in turbulent markets [7]. - Despite a temporary slowdown in its credit ratings business due to high interest rates, S&P Global is expected to recover as rates decline [7]. - The company has a forward yield of 0.9% and has raised its dividend for 52 consecutive years, with a low trailing payout ratio of 29% [8]. - Analysts anticipate EPS growth of 9% in 2025 and 12% in 2026, with a forward price-to-earnings ratio of 26, indicating it is not overly expensive [8]. Walmart - Walmart serves 270 million customers weekly across 10,750 stores and online marketplaces in 19 countries, providing it with significant scale to mitigate tariff impacts [9]. - Many of Walmart's suppliers pre-shipped products to the U.S. before tariffs were implemented, and the company can negotiate lower prices or adjust retail prices to manage costs [10]. - Walmart has a forward yield of 1.1% and has raised its dividend for 52 consecutive years, maintaining a low payout ratio of 34% [11]. - Analysts expect adjusted EPS growth of 5% in fiscal 2026 and 12% in fiscal 2027, with a forward price-to-earnings ratio of 31, suggesting that its core strengths may justify the higher valuation [11].
Here's Why Philip Morris (PM) is a Strong Momentum Stock
ZACKS· 2025-04-08 14:50
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Style Sc ...
22nd Century CEO & Chairman Larry Firestone Provides Corporate Update Letter to Stockholders
Newsfilter· 2025-04-08 12:00
Corporate Update Letter Highlights Plans to Begin Profitable Growth Phase in 2025 on Expansion of Rebranded VLN® Cigarette Products MOCKSVILLE, N.C., April 08, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (NASDAQ:XXII), a tobacco products company that is leading the fight against nicotine by offering smokers a choice about their nicotine consumption, today issued the following letter to stockholders from Larry Firestone, the Chief Executive Officer of 22nd Century Group, Inc.: A Letter to Our Sharehold ...
22nd Century CEO & Chairman Larry Firestone Provides Corporate Update Letter to Stockholders
Globenewswire· 2025-04-08 12:00
Corporate Update Letter Highlights Plans to Begin Profitable Growth Phase in 2025 on Expansion of Rebranded VLN® Cigarette Products MOCKSVILLE, N.C., April 08, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine by offering smokers a choice about their nicotine consumption, today issued the following letter to stockholders from Larry Firestone, the Chief Executive Officer of 22nd Century Group, Inc.: A Letter to Our Sharehol ...
As Markets Bleed, Altria Lights Up - Recession Proof 7% Yield
Seeking Alpha· 2025-04-06 08:25
Core Viewpoint - Altria (NYSE: MO) is one of the few stocks showing positive performance amidst a market downturn [1] Group 1: Company Performance - Altria is currently posting green candles while most other stocks are declining [1] Group 2: Market Context - The article discusses the broader market conditions, indicating a general market tumble with only a handful of stocks performing well [1]
This Ultra-High Dividend Stock Is Yielding 7%: Should You Buy It With $1,000 Right Now?
The Motley Fool· 2025-04-05 22:23
Core Viewpoint - Altria Group is positioned as a stable investment option during market uncertainty, offering consistent dividend income and potential growth in its smoke-free product segment [2][10]. Financial Performance - Altria's net revenue after excise taxes increased by 1.6% year-over-year to $5.1 billion, despite an 8% decline in cigarette sales volume [3]. - The smokeables division generated an operating income of $10.8 billion in 2024, with a 60% operating margin, highlighting its profitability [3]. Product Strategy - Altria aims to double its smoke-free product sales to $5 billion by 2028, although it currently lags behind competitors like Philip Morris International [4]. - The company is focusing on expanding its smoke-free product offerings, including nicotine pouches and electronic vaping [4]. Capital Returns and Dividends - Altria has reduced its shares outstanding by 14% over the last 10 years, with accelerated buybacks in 2024 [6]. - The dividend per share has increased by approximately 100% over the past decade, with a current quarterly payout of $1.02 [6]. - Management plans to grow the dividend per share at a mid-single-digit percentage rate annually, around 5% through 2028 [7]. Investment Rationale - Investing $1,000 in Altria Group stock is projected to yield around $70 in annual dividend income based on the current yield [9]. - The company has demonstrated a 103% growth in free cash flow per share over the last 10 years, providing a solid foundation for future dividend increases [9][10].
British American Tobacco and Altria Might Not Be Worth the Risk, but These 3 High-Yield Stocks Are
The Motley Fool· 2025-04-05 09:12
Group 1: Tobacco Industry Overview - British American Tobacco (BTI) has a dividend yield of 7.2%, while Altria (MO) has a yield of 6.9% [1] - Both companies have been raising their dividends, primarily due to their ability to increase cigarette prices [3] - However, cigarette volumes have been declining for years, with British American Tobacco's volume falling by 5% and Altria's by 10.2% in 2024 [4] Group 2: Risks in Tobacco Sector - Price hikes have been used to offset declining volumes, but this strategy may not be sustainable long-term [5] - Both companies are attempting to diversify away from cigarettes but have not yet found a viable solution [5] - The long-term decline in cigarette volumes poses a risk to the sustainability of their dividends [15] Group 3: Alternative Investment Opportunities - Enterprise Products Partners (EPD), Enbridge (ENB), and Realty Income (O) are presented as less risky alternatives with yields of 6.2%, 5.8%, and 5.6% respectively [2] - Midstream companies like Enterprise and Enbridge generate stable cash flows from energy infrastructure, which is less affected by volatile oil and gas prices [7] - Realty Income operates in the real estate investment trust sector, owning over 15,600 properties, which mitigates tenant risk through diversification [11][12] Group 4: Financial Stability of Alternatives - Enterprise has increased its distribution annually for 26 consecutive years, while Enbridge has a 30-year dividend streak [10] - Realty Income's size and financial strength provide it with advantageous access to capital markets, allowing for larger deals and steady growth [13] - Realty Income has a history of three decades of annual dividend increases, making it a reliable choice for income investors [14]
Best performing S&P 500 stocks of Q1 2025
Finbold· 2025-04-04 12:31
Market Overview - As the first quarter of 2025 concluded, initial market optimism faded due to trade war fears and economic uncertainty [1] - No S&P 500 sector achieved double-digit gains, with energy leading at an 8.08% rise [2] Top Performers - CVS Health emerged as the top-performing S&P 500 stock, surging 52.8% following stronger-than-expected fourth-quarter earnings [3] - Philip Morris International followed with a 33.1% gain, driven by growth in its smoke-free product segment and high dividend appeal [5] - Newmont Corporation rose 30.5% due to increasing gold prices amid market uncertainty [6] - AT&T Inc. gained nearly 26%, benefiting from its domestic business model that insulated it from tariff volatility [7] Financial Highlights - CVS Health exceeded Wall Street estimates on revenue and adjusted earnings per share, trading at $66.79 [4] - Philip Morris International offers a quarterly dividend of $1.35 per share, with shares trading at $161.75 [5] - Newmont Corporation's stock is trading at $47.60 [6] - AT&T's stock is currently at $28.73, favored by income-focused investors due to its strong dividend yield [7]