I purchased 11 shares of Lorillard at $113.74 plus commissions. Lorillard is doing a 3 for 1 stock split within the next week; this purchase came with due bills (I will receive the extra shares). At this purchase price I can expect to receive $68.20 annual dividends on a 5.45% yield before transaction costs. I anticipate a dividend hike before the next payment, we'll have to see what happens there.
Tobacco stocks offer dividend growth investors the rare combination of high current yield coupled with high expected dividend growth. It's the best of both worlds and LO is no exception. Lorillard is best known for its Newport brand of menthol cigarettes, which has been gaining market share the past few years. They have also expanded into electronic cigarettes with Blue e.cigs and sell budget smokes with a couple off labels. Lorillard claims to be the oldest publicly traded company on the NYSE with its founding in 1760. That's over 250 years of continuous operation.
I just started working night shift which will be great for buying stocks. There isn't as much to do at night so I can just sit there and see what opportunities the US markets present... in real time. I'm pretty happy with the purchase price on this one as I have a buy price of $115 and have it fairly valued at $125. Morningstar has it listed at $122 which helps to validate my beliefs.
Smoke 'em if you got 'em!