How Governments Can Kill Profitable Habits

The following video is part of our Motley Fool Exclusive Interview series.

In today's edition, Fool.com analyst Austin Smith interviews acclaimed author and New York Times columnist Charles Duhigg about his recent book The Power of Habit and the iEconomy series he's authored for the Times.

In the following video, Charles looks at some of the things governments can do to change deeply entrenched habits like smoking. With most habits, governments simply need to find the right lever to pull to make the habit less convenient, and this could have a dramatic impact on tobacco stocks. 

It's the same tactic that New York City has implemented with its recent soda ban, which could negatively impact two other big habit stocks: Coca-Cola (NYSE: KO  ) and PepsiCo (NYSE: PEP  ) .

If there's one thing these companies have in common besides the purchase habits their products encourage, it's monster dividends. But governments' attempts to change those habits are a huge threat. Instead, look for dividends that could help you retire rich

We've outlined nine of these top dividend stocks in our free report. Click here now to read more

Austin Smith owns shares of Coca-Cola, PepsiCo, and Philip Morris International. The Motley Fool owns shares of PepsiCo. Motley Fool newsletter services recommend Coca-Cola and PepsiCo. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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 (2)

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.

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: 2070475, ~/Articles/ArticleHandler.aspx, 10/24/2014 2:32:40 PM

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...


Advertisement