Great high dividend stocks does not come in a specific form and shape, it could lie in any sector or any industry, but there is no doubt that these high dividend stocks definitely have solid and steady fundamentals and are paying sustainable and relatively steady and high dividends. Today we pick up two high dividend stocks in the tobacco industry industry which you can put your eyes on the juicy payouts of the two stocks for several minutes. However, this does not mean you should put them in your portfolio, at least, they will be options to a certain extent when you think about which high dividend stock to buy.
Altria Group, Inc. (MO) is a holding company which is engaged in the manufacture and sale of cigarettes, smokeless products, cigars, wine, and financial services in the United States.
Over the past five years, the company on average yielded 7.90% and currently yields 5.0% Let’s have a glance over the company’s past five year financial results: The company has a solid and steady performance during the past five years. During the period from 2007 to 2011, the company generated revenues of $15.21 million, $15.96 million, $16.82 million, $16.89 million and $16.62 for the each year, respectively. Net incomes for the past five years were $3.13 million, $3.09 million, $3.21 million, $3.91 million and $3.39 million, respectively. The company currently commands a market value of $66.21 billion. MO shares trade 19.56 times earnings.
Reynolds American Inc.(RAI) was founded in 1875 and is headquartered in Winston-Salem, North Carolina, through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. The company owns a variety of cigarette brands such as CAMEL, NATURAL AMERICAN SPIRIT, STATE EXPRESS 555, CAMEL and so on.
The company currently pays a dividend of 5.49%; over the past five years the company yielded averagely 5.49%.
RAI operates its business in a stable state, during the period from the year 2007 to 2011, the compnay realized an average annual revenue of $8.68 billion and the specific revenue for the each year during that period fluctuated with small range around the average value. Net incomes also maintained a stable level, for the last five years, net incomes were $1.31billion, $1.34 billion, $962 million, $1.33 billion and $1.41billion, respectively. The company currently commands a market value of $23.17 billion. RAI shares trade 18.25 times earnings.
These two high dividend stocks mentioned above are hardly considered as growth stocks, but the high payouts in the past have kept these income-minded investors in the stocks without capital appreciation for many years. To picking high dividend stocks which will payoff, the investor should not act on hearsay or just a single suggestion, it needs hard work, savvy and good judgement based on learning and experience.