Smoke 'em if you got 'em - Tobacco Safe Haven
$MO - Altria - 6.96%
$PM - Philip Morris - 4.48%
$BTI - British American Tobacco - 7.92%
($MO+$PMI)/SPY - U.S Tobacco Stocks vs. SPY - When investors grow wary of markets they find comfort in Tobacco Stocks. With general markets facing increasing headwinds, investors may prefer this consumer staple. Even though, these companies are tobacco companies; their future is a non-combustable alternative. Add high inflation and Tobacco is an unusual position to profit. High Inflation doesn't greatly affect Tobacco companies' bottom line. The final pricing of tobacco products is influenced by tax and regulatory fees. Roughly 70-80% of the final cost. An increase in costs due to supply chain issues does not get passed on to consumers in a meaningful way. High dividend yields and potential price appreciation make these names look attractive. Many of these Tobacco stocks peaked in 2017 and have corrected to the covid bottom in March 2020. Since March 2020, they have been trending upwards.
$PM - Philip Morris - 4.48%
$BTI - British American Tobacco - 7.92%
($MO+$PMI)/SPY - U.S Tobacco Stocks vs. SPY - When investors grow wary of markets they find comfort in Tobacco Stocks. With general markets facing increasing headwinds, investors may prefer this consumer staple. Even though, these companies are tobacco companies; their future is a non-combustable alternative. Add high inflation and Tobacco is an unusual position to profit. High Inflation doesn't greatly affect Tobacco companies' bottom line. The final pricing of tobacco products is influenced by tax and regulatory fees. Roughly 70-80% of the final cost. An increase in costs due to supply chain issues does not get passed on to consumers in a meaningful way. High dividend yields and potential price appreciation make these names look attractive. Many of these Tobacco stocks peaked in 2017 and have corrected to the covid bottom in March 2020. Since March 2020, they have been trending upwards.
Komen:
Is Tobacco the new Gold?
Komen:
You'd light 'em up and smoke 'em if you had 'em, but you just ain't got 'em