Tuesday, March 15, 2016

Adding RAI to 2016 Portfolio

Reynolds American was a Dividend Machine in 2014 at a basis of $49.84.  It was a good pick.  The stock split 2:1 in September 2015 and the dividend has steadily increased.  http://www.themoneymadam.com/2014/02/an-almost-dividend-machine-bona-fide.html

Reynolds American, symbol RAI, is the second largest tobacco provider in the United States, the second largest smokeless tobacco provider in the U.S. and marketers of nicotine replacement therapy in the U.S. and Sweden.

Whether you like it or not, tobacco remains a good business and RAI has the fundamentals to prove it.   I am particularly impressed by their revenue growth, split history and dividend growth.   Moreover, this stock also has calls that are worth my while.

See the table below to see how RAI meets all the criteria needed to be included in the 2016 portfolio.

M* TheMoneyMadam

Long RAI with calls