Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Is Big Tobacco Changing for Good?

The following video is part of our "Motley Fool Conversations" series, in which consumer-goods editor and analyst Austin Smith and energy editor Joel South discuss topics around the investing world.

Looking at the consumer-goods sphere, Austin sees an interesting trend in Big Tobacco toward smokeless tobacco products and less harmful smoking alternatives. Combine the fact that domestic smoking rates continue to decline and many manufacturers continue to realize volume difficulties, and it's tempting to say that the age of Big Tobacco is over. Austin doesn't think this is the case at all and still sees cigarette manufacturers being highly profitable and stable companies with great dividends. Moves like Lorillard's acquisition of bluCigs aren't real needle-movers yet. They are bricks being laid for a future that's still a long way off, but they do give cigarette companies more options down the road.

At the end of the day, though, the tobacco space is still highly profitable -- you just have to go abroad. Many American companies are realizing this, and they've seen huge success in doing so. You can read about "3 Companies Set to Dominate the World." in our new analyst report. It's totally free, and you can read about them by clicking here now.

Austin Smith owns shares of Philip Morris International. Joel South and The Motley Fool have no positions in the stocks mentioned above. Motley Fool newsletter services recommend Philip Morris International. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1880408, ~/Articles/ArticleHandler.aspx, 5/28/2016 12:01:33 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 hours ago Sponsored by:
DOW 17,873.22 44.93 0.25%
S&P 500 2,099.06 8.96 0.43%
NASD 4,933.51 31.74 0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

6/12/2015 4:05 PM
LO.DL $0.00 Down +0.00 +0.00%
Lorillard, Inc. CAPS Rating: ****
CIGX.DL $0.00 Down +0.00 +0.00%
Star Scientific, I… CAPS Rating: *
MO $63.96 Down -0.04 -0.06%
Altria Group, Inc. CAPS Rating: ****
PM $99.18 Up +0.17 +0.17%
Philip Morris Inte… CAPS Rating: ****
VGR $21.36 Up +0.13 +0.61%
Vector Group Ltd. CAPS Rating: ***