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The Dividend Investors' Guide: Part XXII - Tobacco Dividends That Smoke The Market
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Published Sun, 12 Aug 2012 05:45:02 -0400 on Seeking Alpha
Poised to Produce If you are joining the series for the first time, you may find it informative to refer to the first article in the series, "The Dividend Investors' Guide to Successful Investing," where I provide more details about my process for selecting companies for my master list and details about why I use the metrics that I do. The tobacco industry provides some great dividend yields but, for the most part, it lacks much growth potential. There is one exception to this rule that I will enlighten you with in just a moment. But first, let us take a few words to examine some of the peculiarities of this industry. Most tobacco companies have negative free cash flow. Several, like many large corporations today, are buying back shares. But, unlike most companies, the tobacco companies often... Read more


