Although selling traditional cigarettes is highly profitable, the business is in decline and is expected to keep declining. Tobacco companies need to find new ways to grow and diversify their businesses. Buying tobacco stocks is as easy as buying any other kind of publicly traded company. The cigarette maker’s annualized average return was 20% during that time.
But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike. The tobacco industry boasts strong companies that are objectively stable with high yields. The best performers are usually the most stable, own the largest market share and have an eye on the horizon. While growth and returns are never guaranteed, you should play to win — always stay abreast of developments in the regulatory space.
- And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.
- While growth and returns are never guaranteed, you should play to win — always stay abreast of developments in the regulatory space.
- Companies now looking to phase out traditional products and replace them with healthier, lower-risk alternatives opens the tobacco industry to new players.
- Take a look at Benzinga’s list of some of the best tobacco stocks before you invest.
Finding Perfect Tobacco Stock Made Easy with Wisesheets
On top of that, British American Tobacco plans to buy back its own shares in the future which will have a positive impact best tobacco stocks on earnings-per-share as well. These negative trends have kept many investors away from tobacco stocks. However, tobacco stocks can still generate solid total returns given that they tend to offer high dividend yields. Like other tobacco companies, BAT is focused on substantially transitioning to next-gen products. In 2024, the company saw a 8.9% decline in cigarette sales volume to 505 billion.
- Companies that promote unapproved products risk “civil and criminal penalties,” the FDA warned.
- Total tobacco market share improved in three out of five top markets.
- Pharmaceutical and processed food operations are the other businesses.
- Vector Group Ltd. embodies diversification, with significant stakes in the tobacco and real estate sectors.
Related investing topics
Are they the ultimate sin investment or an undervalued gem in a volatile market? With the landscape shifting beneath our feet, 2024 presents a unique set of challenges and opportunities for those eyeing the tobacco industry. This guide doesn’t just skim the surface; it dives deep, offering insights that could redefine your portfolio.
It owns a rich brand portfolio including Winston (non-U.S.), Camel (non-U.S.), and Mevius, and holds leading shares in many core markets including Japan, Russia, and the U.K. It has added Logic as a vaping brand and Ploom/PloomTech heated tobacco lines into its reduced-risk-product portfolio. The tobacco business contributes 90% of group sales and nearly all profits, with more than half generated by JTI, the overseas tobacco arm. Operations in 1999 and further expanded through multiple acquisitions, of which the purchase of Gallaher in 2007 was the most notable, doubling JTI’s sales. Pharmaceutical and processed food operations are the other businesses.
Rooted in Richmond, Virginia, Universal has carved out a niche as a premier leaf tobacco merchant, not venturing into consumer tobacco product manufacturing. Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation. In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap. If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone. I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report. In fact, Verge argues this company’s supercheap AI technology should concern rivals.
The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.
The stock also offers a healthy dividend yield of over 3% of the share price. If its history as part of Altria were included, it would qualify as another Dividend King. While the HNB process is similar to the one used by vaporizers and e-cigarettes, devices such as the IQOS use tobacco rather than the liquid made for vaporizers.
Tobacco industry overview
Look no further than Benzinga’s picks for the Best Online Brokerages. Once you set up an account, you’ll be ready to buy tobacco stocks. Altria is a tobacco stock that sells cigarettes, chewing tobacco, cigars, e-cigarettes, and more under a variety of brands, including Marlboro, Skoal, and Copenhagen, among others. The company manufactures and sells a variety of tobacco products, including cigarettes, tobaccos, cigars, rolling papers, and tubes.
Wisesheets
While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes. Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. You can discover everything about this company and its groundbreaking technology right now.
Management has set a target payout ratio of 80% of earnings per share, knowing that its dividend is the main reason shareholders own the stock. As of October 2025, its dividend yield was an attractive 6.56%, and it paid a dividend of $1.06 per quarter. By following these strategies and leveraging the right tools, you can navigate the complexities of the current market environment, smoke the competition, and maximize your investment returns. Remember, the key to successful investing in this sector lies in staying informed, diversifying your holdings, and maintaining a long-term perspective. This real-time data feed ensures you’re always informed about the latest price movements, enabling swift, informed investment decisions.
Historical Data for Predicting Future Trends in the Tobacco Industry
To make matters worse for tobacco companies, most of the world’s smoking population rate looks much the same as the above chart. It has become abundantly clear that consumers around the world are eschewing tobacco products for health concerns. The tobacco industry has been a winner for investors for generations. Tobacco stocks tend to offer reliable high-yield dividends, and the product is considered recession-resistant since consumers buy it regardless of the state of the economy. Wisesheets turns the complex world of tobacco stock investment into a navigable path, offering you the clarity and data needed to make those crucial investment decisions.
There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. Philip Morris International is a leading international tobacco company engaged in the manufacture and sale of cigarettes and other nicotine-containing products in markets outside the United States. Management’s vision is that these products ultimately replace cigarettes. British American Tobacco’s New Categories businesses grew a little faster than the rest of the company, gaining share versus the company’s overall revenues. Management believes that growth will accelerated during the second half of the year due to the roll-out of new products in the company’s New Categories/smokeless businesses.
Given the propensity of localities to use tax increases on cigarettes, the situation will likely only get worse for tobacco stocks. The long-term decline in tobacco smoking explains why Altria has taken steps to diversify away from traditional cigarettes. So far, Njoy is delivering solid growth, although it still makes up a small part of the business.
