3 Tobacco Companies That Won’t Sweat a Recession
Smokeless alternatives, a more health-conscious population, and regulations in key markets all threaten cigarette makers. Nonetheless, the $888 billion industry is expected to expand 4% on average each year to $1.124 trillion in 2024. Rising disposable income in much of the developing world is driving the adoption of premium tobacco products.
Cigarettes are famously among the consumer staples for which demand remains stable during recessions. Due in part to moral objections to these products, many investors avoid tobacco companies altogether, which results in attractive valuations and high-dividend yields. As a result, these make a compelling financial case for portfolios as a recession approaches.
Image Source: Getty Images
Source Fool.com
