Better Buy: Altria Group vs. British American Tobacco

Better Buy: Altria Group vs. British American Tobacco

Tobacco stocks have been solid dividend plays for long-term investors. Smoking rates have dropped in many parts of the world, but tobacco companies have  offsett those declines with higher prices, cost-cutting measures, and diversification into new markets like e-cigarettes. Those moves have protected their bottom lines and enabled them to keep paying out generous dividends.

Today, we'll compare two well-known tobacco giants: Altria (NYSE: MO), the biggest tobacco company in America, and British American Tobacco (NYSE: BTI), a U.K.-based multinational company that recently took full ownership of the No.2 player in the U.S. tobacco market. British American Tobacco handily outperformed Altria over the past 12 months, with its 23% rally crushing Altria's 6% gain, but will that trend continue through the end of the year and beyond?

Image source: Getty Images.

Continue reading

Source: Fool.com