Ispire Technology leads the global vaporizer market with its innovative R&D, design, and distribution of branded and ODM solutions. With over a decade of experience and a commitment to quality, Ispire has secured over 200 core-technology patents. RLX Technology Inc is a leading branded e-vapor company in China, known for its strong in-house technology, product development capabilities, and deep understanding of adult smokers’ needs. Kaival Brands Innovations Group, Inc. is best tobacco stocks at the forefront of eco-friendly innovation in the vaping industry. With a focus on quality, integrity, and sustainability, Kaival Brands has positioned itself as a leader in developing and distributing premium vaping products and accessories. Altria’s story is not just about tobacco; it’s about strategic evolution and diversification, aiming to stay ahead in a dynamic global market.
Indeed, health organizations like the American Lung Association actively encourage localities to raise taxes on cigarettes and other tobacco products to discourage usage. Other forms of tobacco usage have seen similar rates of decline, including smokeless tobacco. This has been the case with every demographic group, so it is widespread among all of the companies’ potential customers. Tobacco stocks are particularly attractive to income investors thanks to their generous dividends and defensive characteristics during economic downturns. The tobacco industry fits this model, despite declines over time in the number of customers that use its products. However, the vast majority of its revenue still comes from cigarettes.
- In Q1 2025, Njoy’s consumable shipments increased 23.9% to 1.235 billion units, and device shipments jumped 70% to 300,000 units.
- Knowledge of the adverse effects of smoking, changing consumer tastes and increased regulations all contribute.
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- One specific issue, marketing plan consideration, was returned to lower courts after the Supreme Court reversed the 5th Circuit’s prior criticism of the FDA’s changing criteria.
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You’ve just navigated the twists and turns of the tobacco stock market, armed with insights and strategies to make your investment journey smoother. It’s a lot to take in, but you’re now better equipped to make informed decisions that could lead to substantial returns. By leveraging Wisesheets, you’re not just choosing a tobacco stock; you’re making a calculated decision based on comprehensive analysis, real-time data, and historical trends. This approach minimizes risks and positions you for a more informed investment strategy in the tobacco sector. And if you’re in the market for bargain stocks, take a look at our lists of stocks under $20, stocks under $10 and even stocks under $5. You can find more Consumer Defensive stocks, updated daily, on Benzinga’s Best Consumer Defensive Stocks listing, too.
British American Tobacco (BAT), a behemoth in the tobacco industry, boasts a history stretching back to 1902. Headquartered in London, England, BAT has risen to become the world’s largest tobacco company by net sales as of 2021. Its global footprint covers around 180 countries, offering a wide array of products from cigarettes to innovative nicotine solutions.
Philip Morris International (NYSE:PM)
Nicotine pouches have emerged as the fastest-growing segment from new categories, with volume sales up 55% to 8.3 million units, or 814 million pounds (about $411 million at current exchange rates). More than 40% of the company’s revenue now comes from smoke-free products, and IQOS is gaining market share in countries where it’s available. Its 2022 acquisition of Swedish Match for $16 billion has been a success due to the popular Zyn chewable nicotine pouch. In the second quarter of 2025, sales of nicotine pouches, primarily Zyn, jumped 43% to 214.7 million. Overall, PM ranks first among the 10 Best Tobacco and Cigarette Stocks to Buy Now.
Best Tobacco and Cigarette Stocks to Buy Now
On July 30, 2025, Altria Group, Inc. reported its financial results for the second quarter of 2025. The company posted adjusted earnings per share of $1.44, surpassing the analyst estimate of $1.38 and rising 8.3% year over year. Total tobacco market share improved in three out of five top markets. Improvements in the U.S. (+10 basis points), Germany (+65 basis points), and Australia (+5) was partially offset by the U.K. Tobacco stocks are widely prized by income investors thanks to their high dividend yields, stable payouts and dividend increase streaks. However, declining customer counts and usage rates are weighing on the group.
The company also sells a wide range of products, including cigarettes, vaporizers, chewing tobacco, and heated tobacco. Buying shares of BAT is the easiest way to gain portfolio exposure to the whole tobacco industry via just one stock. British American Tobacco (BAT) has also become a titan of the industry, fueled by its $49 billion acquisition of Reynolds American in 2017.
Market Newsletter
Net revenues were $6,102 million, with gross profit at $3,900 million and operating income at $3,200 million. In addition, population growth partly offsets the effect of the declining percent of smokers. The number of people smoking at least 15 cigarettes a day has plummeted in the past few decades. Today, the overwhelming majority of smokers use fewer than 15 cigarettes daily. But first, we’ll take a look at the tobacco industry’s primary concern, which is declining tobacco usage. This allows for predictable revenue and high levels of profits over time.
Tobacco Stock #5: Imperial Brands plc (IMBBY)
- Despite the difficulties it’s faced in diversifying away from cigarettes, Altria Group remains a dividend powerhouse.
- In the ever-evolving tobacco cigarette business, savvy investors need strategies that not only navigate the current landscape but also anticipate future shifts.
- You can find more Consumer Defensive stocks, updated daily, on Benzinga’s Best Consumer Defensive Stocks listing, too.
- Organic growth due to rising cigarette prices and the rise of vaping products should be positive for revenues, and declining interest expenses due to debt paydown could impact profitability as well.
Real-time data, and historical insights, all without the drag of manual data entry. With Wisesheets, you’re not just analyzing; you’re strategizing with confidence. Long gone are the days when tobacco stocks were the go-to for investors seeking steady growth and juicy dividends. Despite the industry’s weak revenue and profit development, investors continue to be drawn to these stocks due to their consistent dividends, profitability, and solid profit margins. Investors believe that stronger growth will eventually be catalyzed by next-generation products.
Better stock investments one article a time
For this article, we sifted through the online rankings to form an initial list of the 15 Tobacco and Cigarette Stocks. From the resultant dataset, we chose 10 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1009 hedge funds in Q to gauge hedge fund sentiment for stocks. We have used the stock’s market cap as of April 25, 2025, as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Cigarette and tobacco stocks are companies that produce and sell cigars, snuff, chewing tobacco, cigarettes, e-cigarettes, and all other tobacco products. The key behind an investment in tobacco stocks is the inelastic demand for cigarettes relative to their price due to the addictive nature of these products. The advantage of investing in BAT over Altria and Philip Morris is that it provides exposure to the tobacco sector worldwide rather than just in the U.S. or just internationally.
The company also has a 35% investment stake in e-cigarette maker JUUL, and a 45% stake in the Canadian cannabis producer Cronos Group (CRON). However, investors must keep in mind that the total volumes for the industry are in fairly steep decline, and all indications are that this is irreversible. This sort of decline in an industry’s customer group generally spells trouble for the companies that operate within it. Its high operating profit margin, which topped 45% on an adjusted basis in 2024, helps to ensure the dependability of the quarterly payout.
Regulatory and consumer preference changes continue to plague the group. On July 22nd, 2025, Philip Morris shared its Q2 results for the period ending June 30th, 2025. For the period, the company posted net revenues of $10.1 billion, up 7.1% year-over-year. This was a weaker performance compared to the majority of the last couple of quarters, when Universal was able to grow its revenues on a year-over-year basis. Universal Corporation is a market leader in supplying leaf tobacco and other plant-based inputs to consumer product manufacturers.
Turning Point Brands Inc. (NYSE: TPB)
The Tobacco industry has a total of 10 stocks, with a combined market cap of $440.91 billion, total revenue of $99.14 billion and a weighted average PE ratio of 20.25. According to the Centers for Disease Control and Prevention, the number of tobacco farms in the United States decreased from 93,530 in 1997 to roughly 3,000 in 2022. Nonetheless, the USA was the world’s fifth-largest producer of tobacco in 2021, harvesting 431.6 million pounds in 2022, compared to 1.74 billion pounds in 1997. Seventy-seven percent of U.S. production came from North Carolina or Kentucky. Sales of cigarette packs fell from 12.5 billion to 9.1 billion packs between 2015 and 2021, a 27% decrease. In 2024, the average cigarette tax in each state was $1.93, while the federal tax was $1.01.
