Tobacco stocks: Which ones are worth a look despite their high dividend yield?

Tobacco stocks: Which ones are worth a look despite their high dividend yield?

According to a report by www.boerse-online.de, the tobacco sector has experienced developments in recent years that have surprised many. Thanks to smoke-free products, e-cigarettes and increasing numbers of smokers, including among young people, some companies in the industry appear to not only be surviving, but also having a prosperous future. Against this background, investors are faced with the question of which stocks they should bet on. The focus is on the three largest corporations: Philip Morris, Altria and BAT.

BAT, although attractive with a dividend yield of 9.75 percent, is struggling with declining sales, a 28 percent share price loss since the start of the year and challenging alternative products. The company therefore receives a rating of “Sell”.

Altria, with a dividend yield of 9.5 percent, is the market leader in America and, although also hit by declining sales, the problems appear smaller than BAT's. The company receives a “Hold” rating.

Philip Morris, with a dividend yield of 5.7 percent, focused early on alternative products and invested heavily. The company's future prospects are rated positively, which is why it receives a "Buy" rating.

The assessments are based on analyst opinions and take current market developments into account. However, it is always important to remember that forecasts are not guarantees and the market is volatile.