Do you think tobacco company stocks are still interesting, or have they already seen their main growth and are now expensive?

For a while it looked like tobacco companies would fall out of favor and their sales would decline, but the opposite is true. For example, Altria ($MO) reported very strong results yesterday and its shares gained more than 8% that day. Overall, tobacco companies are a great business. The combination of solid performance over the past few years and a dividend yield above 5% is, in my opinion, excellent. Personally, I'd guess these companies could still grow quite well over the next five years.


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