Dividend stocks to watch: The cigarette manufacturers always pay a decent dividend to the shareholders, as most of them have solid and stable business fundamentals. Here are three such stocks with an enjoyable annual yield of more than 4%:
British American Tobacco PLC (ADR) (BTI) a manufacturer, distributor and seller of tobacco and nicotine products pays dividends to the shareholders at a annual yield of 4.04% and a payout ratio of 76%. The most recent quarterly dividend of $0.45 will be paid on October 04, 2012 with the ex-date on August 15, 2012. The Tobacco company has been paying distributions since 1998 and has a five year average dividend yield of 3.70%, according to the data by the Yahoo finance.
The tobacco giant experienced a 3.2% increase in profit for the first half of 2012, but the figure of 1.93 billion pounds ($3 billion), still below the average analyst estimate of 1.97 billion pounds. Revenue edged up 0.01 billion to 7.44 billion pounds from a year ago, also missing the consensus estimate of 7.61 billion pounds.
Over the past 52 weeks, BTI shares were traded between $82.27 and $109.73. British American Tobacco has a market cap of 100.92 billion and a P/E of 20.46.
Reynolds American, Inc. (RAI) through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. RAI is also named one of the high dividend stocks as it rewards investors at an annual yield of 5.20% and a payout ratio of 89.00%. The most recent quarterly dividend of $0.59 will be paid on October 1, 2012 with the ex-date on September 6, 2012. The company has been paying distributions since 2004 and has a five year average dividend yield of 6.30%, according to the data by the Yahoo finance.
Reynolds American grew its second-quarter earnings by 35% on higher prices for cigarettes and stronger volume and pricing for moist snuff, helping to offset the tobacco company’s cigarette sales decline. For this quarter Net income was $443 million, or $0.78 per share compared to $327 million, or $0.56 per share a year ago; revenue was down 4% to $2.18 billion. Analysts had averagely expected the company’s second quarter EPS of $0.76 on revenue of $2.25 billion.
Over the past 52 weeks, RAI shares were traded between $35.65 and $46.39. Reynolds American has a market cap of $25.71 billion and a P/E of 18.01.
Altria Group, Inc., (MO) through its subsidiaries, engages in the manufacture and sale of cigarettes, smokeless products, machine-made large cigars and pipe tobacco and wine in the United States and internationally.
MO comes in as one of the favorable dividend stocks by returning cash to shareholders at an annual yield of 4.70% and a payout ratio of 80.00%. The most recent quarterly dividend of $0.59 was paid on July 10, 2012 with the ex-date on June 13, 2012. The company has been paying distributions since 1928 and increased its payout amounts for 46 years in a row. Over the past five years, the company on average yielded at 6.30%, according to data by the Yahoo finance.
The cigarette manufacturer reported its earnings almost tripled in the second quarter of 2012 to $1.23 billion, or $0.60 per share, topping the Waa Street estimate of $0.57 per share. The good quarterly results were due to higher prices assisted offset flat cigarette volumes evaluated with a year before when its results were depressed by a large charge.
Over the past 52 weeks, MO shares were traded between $25.27 and $36.29. Altria Group has a market cap of $68.95 billion and a P/E of 15.67. Revenue rose 14% to $4.58 billion.