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Time to Cash in on ‘Sin’ Stocks?

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  • Description

    Shah Gilani of Money Morning breaks down whether you should invest in alcohol and tobacco.

  • Duration 2:57
  • Date

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This transcript is automatically generated

This morning.

-- all the uncertainty in the economy right now people still smoke and drink so should you be looking at sin stocks to protect your money.

Join in the company is Shah Gilani with money morning.

I -- eat do you buy that argument I'm I'm thinking this festive Altria.

Then the all Philip Morris that the domestic tobacco company -- in the United States.

They brought in two billion dollars more in a single quarter than had been expected to bring -- is is that gonna stop you get behind at times like this.

Yes absolutely.

Not just because it's a -- stock I think people will revert back to the things -- give us some pleasure in difficult times.

But -- -- in particular has a four point 7% dividend yup I think I you have to like.

Anything that provides you income and that has been she appreciation for appreciation potential so Altria is as always on the top my list.

We bought up for quite some time we're gonna get back into -- I think of the market gets a little bit we'll be looking to acquire position that it began.

I just find that number four point 7% dividend yield.

In a stock which brings in two billion dollars more in a quarter than was expected four point 7% whether the bond market can I get lax.

You -- Stewart and and another thing about dividend yield as potential to go higher right now with litigation everything that's always ongoing with regards to tobacco.

There's lot of reserves being put aside by Altria -- mean.

Litigation is always going to be a problem for them to settlement that occurred previously in in 99 isn't the end of the matter for them.

Offer any of the cigarette and tobacco companies but that there is a protective of -- dividend yields increase so.

I like that prospect to.

That we've got another report today that we in America spent more than 200 billion dollars in one media on Smartphones and tablets now I realize that come as a whole raft of company is -- -- the Microsoft the apples the Amazon's of this world a little putting the stuff out.

But some would seem to me to office safety 200 billion dollars a year in -- line of products.

Sure the companies making those products all pretty safe would you say that.

I would say there probably very say but it safe isn't always exciting I think.

As safe as they may be they may become a little Monday and I think that ended the business the hardware side of the business is becoming somewhat to monetize I think will increasingly -- not direction.

I prefer another play -- like -- I like that the purveyors of the technology to allow the Smartphones.

Two to enhance the digital -- future were all facing some -- like.

Verifone -- symbols PAY.

Provides a lot of that transmission technology and I think that's the direction I would go in terms of Smartphones and -- Okay I'm gonna get back to offer for a second the I want to confirm you know noted that the moment do you but you -- -- -- -- is that correct.

Not threat that's correct not presently -- but deputy gonna be accumulation mode -- -- comes on just a little bit and I think that the market continues to be Dicey here.

I like it as a defensive play with that yields all right Shah Gilani thanks so much in a full point 7% dividend yield on ultra fascinated me.

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