The ETFI Global Tobacco Index is now yielding over 6%, resulting in a total return of 3% in the past year as the industry continues to shrink amidst M&A activity, including the most recent deal by Philip Morris International (PM) to acquire Canadian tobacco company Rothmans. A pending deal by Altria (MO) for smokeless tobacco maker UST is expected to close in early 2009. The accompanying table presents the statistics for the index and benchmark ETFs for the top 20 rated tobacco companies and all 27 companies in the index with market caps over $100M USD.
The tobacco index is holding up very well as investors seek safe haven, high dividend stocks during the current market and economic turmoil. Tobacco stocks also offer a higher dividend yield and better stock price performance compared to benchmark defensive ETFs such as the Consumer Staples Sector SPDR (XLP), Vanguard Consumer Staples (VDC), and iShares Dow Jones Select Dividend (DVY).
The tobacco index is holding up very well as investors seek safe haven, high dividend stocks during the current market and economic turmoil. Tobacco stocks also offer a higher dividend yield and better stock price performance compared to benchmark defensive ETFs such as the Consumer Staples Sector SPDR (XLP), Vanguard Consumer Staples (VDC), and iShares Dow Jones Select Dividend (DVY).
$46.11 (10/27/08)
