Philip Morris International Inc. (PM), Altria Group Inc (MO): Tobacco Investment Is Good for the Long Run, and for Income

Moreover, British American Tobacco PLC (ADR) (NYSEAMEX:BTI) will reduce its SKU portfolio by 17%, with a 60 % reduction in cigarette paper grades and 23% reduction in blends. The move will certainly push up its operating margin, driving its bottom line higher.

My Foolish take

Among the three, British American Tobacco PLC (ADR) (NYSEAMEX:BTI) has the highest dividend yield at 5.20% while Altria Group Inc (NYSE:MO) ranks second with a 4.9% dividend yield. Philip Morris International Inc. (NYSE:PM) offers the lowest, but still a decent dividend yield of 3.7%. Income investors could consider tobacco companies for their portfolios with their juicy dividend yields. I like Philip Morris and British American Tobacco for their growing emerging market business. I also think Altria could be a decent buy because of its understated SABMiller stake.

The article Tobacco Investment Is Good for the Long Run, and for Income originally appeared on Fool.com.

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