Showing posts with label RAI. Show all posts
Showing posts with label RAI. Show all posts

Monday, September 5, 2016

RAI still a good stock

One of our better picks. M*

Playing Defense With Reynolds American http://seekingalpha.com/article/4004094?source=ansh-d $RAI, $MO

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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
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Wednesday, February 26, 2014

An almost Dividend Machine & a Bona Fide Dividend Machine - DGAS and RAI



This post compares two stocks.    One is an almost Dividend Machine and the other is a bona fide Dividend Machine which I will name as a 2014 DM. 






DGAS – an almost Dividend Machine

Delta Natural Gas Company, symbol (DGAS) is an inexpensive, almost dividend machine stock that could be worth a look.   Dividend Machine fundamentals are in the table below.  The reason DGAS is not a 2014 Dividend Machine is the five year annual dividend increase is only 3.5% and there are no options.


 



Note that DGAS is ex-dividend today so if you buy it, you have to wait a full 3 months before you are paid.


RAI – a 2014 Dividend Machine


At the risk of receiving damning emails, consider Reynolds American, symbol (RAI.)  This is a tobacco company.   All of these companies generate tons of cash, unlike biotech they do not “burn” through it, they share it.   Look at the Dividend Machine fundamentals table below and you will see that RAI is a 2014 Dividend Machine.



Moreover, RAI has call options.   See the call option table below for an option available today.



These are two ideas for income investors.

TheMoneyMadam
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