Chase Yield: Buy Up Altria, BAT, and More

On Mar. 17, 2023, the Food and Drug Administration denied British American Tobacco (BTI) permission for marketing vape products. Markets anticipated the bad news. BAT traded in a downtrend before the news.

E-cigarettes are a necessary substitute for adult smokers. It is less dangerous. Still, the FDA said that science has guided – and will also guide – the FDA’s decision-making on pre-market tobacco product applications.

The FDA decision will only help the black market e-cigarette makers.

Consider Altria

Altria (MO) stock is an attractive income stock, too. The company confirmed on Mar. 6, 2023, that it would acquire NJOY Holdings, a vaper maker, for $2.75 billion. Altria’s CEO, Billy Gifford, said that the company believes in the strength of its commercial resources. Altria can benefit tobacco consumers and expand competition.

Altria exited its investment in Juul, taking a steep loss. It has a good chance of growing its revenue with NJOY.

Imperial Brands (IMBBY) is another attractive income stock. The firm will improve performance by focusing on sales activation. For example, it will develop its market in East Germany.

Imperial is in a resilient market that is immune to inflation. People will not cut down their consumption of tobacco products.