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Cigarette Manufacturers Continue to Pay Hefty Dividends

^{Published on 2011-03-18 05:05:51 - Market Wire}
 

NEW YORK, NY--(Marketwire - March 18, 2011) - With the markets showing signs of volatility this month, investors are once again looking for safe havens. Investors usually count on dividend paying stocks during hectic times in the market believing in the company's security and real earnings power. Somewhat ironically, one of the safest dividend investments is considered to be in the cigarette industry. Even during the recession, while many companies cut their dividend payments, cigarette manufacturers did not. The Bedford Report examines the outlook for companies in the Cigarette Industry and provides research reports on Philip Morris International, Inc. (NYSE: [ PM ]) and Lorillard, Inc. (NYSE: [ LO ]). Access to the full company reports can be found at:

[ www.bedfordreport.com/2011-03-PM ]

[ www.bedfordreport.com/2011-03-LO ]

Tobacco companies are experts at weathering adverse conditions. Negative publicity has sent North American tobacco demand down in recent years, however, cigarette companies have maintained stable revenues by merely upping the price of cigarettes. Stable revenues have kept profits stable, which has kept the sector's high yielding dividends intact.

The Bedford Report releases regular market updates on the Cigarette Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at [ www.bedfordreport.com ] and get exclusive access to our numerous analyst reports and industry newsletters.

Currently, the FDA is investigating the use of menthol in cigarettes. Recently, an FDA advisory panel argued that consumers think menthol flavoring offers health protection or benefits, and menthol cigarettes are disproportionately marketed to African Americans. Cigarette manufacturers see menthol as a growth area, and are quick to defend their product. The tobacco industry's draft report to the FDA acknowledges that "all cigarettes are hazardous to health," and menthol should not be regulated differently.

Lorillard has asked a federal court to stop the FDA from relying on the advisory panel's recommendations. Lorillard produces the top-selling menthol cigarette in the US, with approximately 35 percent of the market.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at [ http://www.bedfordreport.com/disclaimer ]