Stock Quotes in this Article: LO, MO, RAI, VGR

 The following commentary comes from an independent investor or market observer as part of TheStreet’s guest contributor program, which is separate from the company’s news coverage. The opinions expressed are those of the author and do not represent the views of TheStreet or its management.

SAN FRANCISCO (Stockerblog) -- On Friday, after tobacco companies were anxiously awaiting a report from the Food and Drug Administration, it was reported that the FDA would not ban menthol cigarettes. The news caused several of the cigarette stocks to rise. Lorillard (LO) rose by over 10% for the day.


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    Some investors have strong feelings against investing in cigarette stocks, but if you don't, you should consider them for their extremely high yields. Lorillard has a payout of 6.6%. The stock, which markets the Newport, Kent, True, Maverick, Old Gold and Max brands, trades at 11.6 times forward earnings.

    At, we've compiled a list of over half a dozen tobacco stocks with yields in excess of 4%.

    Another example is Vector Group (VGR), a Florida-based tobacco company that has many brands of cigarettes, including Liggett, Grand Prix, Eve, Pyramid, USA and nicotine-free Quest. The stock has a price-to-earnings ratio of 23.7 and pays a yield of 9.3%.

    Reynolds American (RAI) makes and markets cigarettes and other tobacco products, including the Camel, Kool, Pall Mall, Doral, Winston, Salem, Misty, Capri, Dunhill and Natural American Spirit brands. The stock has a forward P/E ratio of 11.8 and pays a yield of 6.3%.

    Altria Group (MO) is a Virginia-based company that makes and markets cigarettes, cigars, and beer. It is the largest cigarette company by market cap in the U.S. The stock has a forward P/E of 11.3, and pays a yield of 6.1%.

    For a list of all the high-yield tobacco stocks, which and be downloaded, sorted, and updated, visit .

    Also check out's collection of anti-smoking pictures to appear on cigarette packs.

    At the time of publication, author had no positions in stocks mentioned.

    Fred Fuld III, the publisher of stock and bond investing blog Stockerblog and founder of WallStreetNewsNetwork, has been in the financial services industry for over 20 years, working as an investment advisor, options market maker at the Pacific Stock Exchange, vice president of a San Francisco money management firm, university faculty member and wholesaler for the New Alternatives Fund (the first environmentally conscious mutual fund). He is the author of the books Investing in Brazil Stocks and The Green Light on Green Stocks.