Tobacco Has Been on Fire Since 2000

The financial media tends to give disproportionate coverage to popular stocks at the expense of everything else. It would probably be a shock to most investors to learn that tobacco stocks have been a huge winner over the last 13 years. Check out this chart below.

The S&P 500 looks like a flat line in comparison. The chart actually understates how well tobacco has done because their dividends are usually above the rest of the market.

We often hear that the last 13 years have been horrible for stocks. Well, not all stocks.

Interestingly, the tobacco rally began not long after The Tobacco Master Settlement Agreement of 1998. I wonder how many folks saw that that rally coming.

Posted by Eddy Elfenbein on May 9th, 2013 at 11:05 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.