The tobacco industry faces tighter regulation and increasingly health-conscious consumers. However, it continues to offer a highly sustainable source of income for the long term. The potential for a rising absolute number of smokers across the world, pricing power and defensive characteristics mean that it is likely to remain a haven for income investors in the long run.
Additionally, the increasing use of next generation products such as e-cigarettes could provide a new source of growth. Therefore, with relatively high yields and high dividend coverage ratios, British American Tobacco (LON:BATS) and Imperial Tobacco (LON:IMB) could be worthy of an investor's attention.
by Evil Knievil| Evil Diaries| 1 mins. to read My generation laments the passing of Sabrina, born Norma Sykes, named after the daughter of the King of Britain and drowned in the river Severn. She was, she claimed, the Manchester junior breaststroke champion but I think she was kidding: she was surely the world senior breaststroke champion.
by Nick Sudbury| Funds| 2 mins. to read There was an interesting piece in the Telegraph recently that looked at whether momentum investing in funds can generate higher returns. The article considered a strategy that was devised and tracked by the investment platform FundExpert.
Material contained within Master Investor Magazine and its website is for general information purposes only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decisions. Master Investor Ltd. does not accept any liability for any losses suffered by any user as a result or any such decision.
Ingen kommentarer:
Send en kommentar