I had a limit order filled this morning for LO. I purchased 26 shares @ $115.00 / share giving me a YOC of 5.4%. At a quarterly dividend of 1.55, this will be a nice boost to my dividend stream paying me $161.20 annually.
LO is projected to earn 7.88, 8.56, 9.41, 10.05 for 2012-2015 respectively. LO has a payout ratio of 70%, TTM P/E of 14.13, and P/S of 2.31. This is the 5th year of dividend increases and I believe they will be able to continue this for the foreseeable future. The company approved in August a share repurchase program up to 50 M worth of shares.
I also noticed a lot of smokers when I was just in Europe these last two weeks. Much more so than where I’m from. Unfortunately, LO doesn’t have a big international presence. It’s big seller is its Newport brand which accounted for 88.4% of its sales revenue in 2011. They also own Kent, True, Maverick and Old Gold brand names and recently purchased Blu Cigs for 135 Million. There are 43 differenct product offerings within these 5 names.