February 20, 2012
The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.
Tobacco is a sector loved for its massive dividends, but makes many investors nervous because of the triple threat of litigation, taxation, and regulation. The last of these three is playing out in a major way in Australia, where a law has passed which mandates all cigarettes must be sold in the same olive drab packaging. Legislation like this has a dramatic impact on the dynamics of the tobacco industry. A recent Financial Times study hypothesized that legislation like this could depress cigarette prices by 19%, greatly impacting those companies which rely on strong brands to move goods.
Philip Morris has gone global for their growth, but they're not the only ones. To read about three others you can read our special free report: "3 American Companies Set to Dominate the World." The report won't be available forever, so we invite you to enjoy a free copy today. Click here to get your copy today!