2025 Tobacco Stocks List The 5 Best Now, Ranked In Order

Indeed, health organizations like the American Lung Association actively encourage localities to raise taxes on cigarettes and other tobacco products to discourage usage. Other forms of tobacco usage have seen similar rates of decline, including smokeless tobacco. This has been the case with every demographic group, so it is widespread among all of the companies’ potential customers. Tobacco stocks are particularly attractive to income investors thanks to their generous dividends and defensive characteristics during economic downturns. The tobacco industry fits this model, despite declines over time in the number of customers that use its products. However, the vast majority of its revenue still comes from cigarettes.

Aurora Cannabis Inc. (NASDAQ:ACB)

Rooted in Richmond, Virginia, Universal has carved out a niche as a premier leaf tobacco merchant, not venturing into consumer tobacco product manufacturing. Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation. In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap. If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone. I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report. In fact, Verge argues this company’s supercheap AI technology should concern rivals.

It owns a rich brand portfolio including Winston (non-U.S.), Camel (non-U.S.), and Mevius, and holds leading shares in many core markets including Japan, Russia, and the U.K. It has added Logic as a vaping brand and Ploom/PloomTech heated tobacco lines into its reduced-risk-product portfolio. The tobacco business contributes 90% of group sales and nearly all profits, with more than half generated by JTI, the overseas tobacco arm. Operations in 1999 and further expanded through multiple acquisitions, of which the purchase of Gallaher in 2007 was the most notable, doubling JTI’s sales. Pharmaceutical and processed food operations are the other businesses.

Nicotine pouches have emerged as the fastest-growing segment from new categories, with volume sales up 55% to 8.3 million units, or 814 million pounds (about $411 million at current exchange rates). More than 40% of the company’s revenue now comes from smoke-free products, and IQOS is gaining market share in countries where it’s available. Its 2022 acquisition of Swedish Match for $16 billion has been a success due to the popular Zyn chewable nicotine pouch. In the second quarter of 2025, sales of nicotine pouches, primarily Zyn, jumped 43% to 214.7 million. Overall, PM ranks first among the 10 Best Tobacco and Cigarette Stocks to Buy Now.

Philip Morris International (NYSE:PM)

You’ve just navigated the twists and turns of the tobacco stock market, armed with insights and strategies to make your investment journey smoother. It’s a lot to take in, but you’re now better equipped to make informed decisions that could lead to substantial returns. By leveraging Wisesheets, you’re not just choosing a tobacco stock; you’re making a calculated decision based on comprehensive analysis, real-time data, and historical trends. This approach minimizes risks and positions you for a more informed investment strategy in the tobacco sector. And if you’re in the market for bargain stocks, take a look at our lists of stocks under $20, stocks under $10 and even stocks under $5. You can find more Consumer Defensive stocks, updated daily, on Benzinga’s Best Consumer Defensive Stocks listing, too.

Turning Point Brands Inc. (NYSE: TPB)

Management has set a target payout ratio of 80% of earnings per share, knowing that its dividend is the main reason shareholders own the stock. As of October 2025, its dividend yield was an attractive 6.56%, and it paid a dividend of $1.06 per quarter. By following these strategies and leveraging the right tools, you can navigate the complexities of the current market environment, smoke the competition, and maximize your investment returns. Remember, the key to successful investing in this sector lies in staying informed, diversifying your holdings, and maintaining a long-term perspective. This real-time data feed ensures you’re always informed about the latest price movements, enabling swift, informed investment decisions.

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On top of that, British American Tobacco plans to buy back its own shares in the future which will have a positive impact on earnings-per-share as well. These negative trends have kept many investors away from tobacco stocks. However, tobacco stocks can still generate solid total returns given that they tend to offer high dividend yields. Like other tobacco companies, BAT is focused on substantially transitioning to next-gen products. In 2024, the company saw a 8.9% decline in cigarette sales volume to 505 billion.

For this article, we sifted through the online rankings to form an initial list of the 15 Tobacco and Cigarette Stocks. From the resultant dataset, we chose 10 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1009 hedge funds in Q to gauge hedge fund sentiment for stocks. We have used the stock’s market cap as of April 25, 2025, as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Cigarette and tobacco stocks are companies that produce and sell cigars, snuff, chewing tobacco, cigarettes, e-cigarettes, and all other tobacco products. The key behind an investment in tobacco stocks is the inelastic demand for cigarettes relative to their price due to the addictive nature of these products. The advantage of investing in BAT over Altria and Philip Morris is that it provides exposure to the tobacco sector worldwide rather than just in the U.S. or just internationally.

• Universal Corporation is a market leader in supplying leaf tobacco and other plant-based inputs to consumer product manufacturers.
• It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.
• My journey from a finance-loving teenager to a tech entrepreneur has been a thrilling ride, full of surprises and lessons.
• Here are actionable tips to help you outperform the market and secure robust returns from your tobacco stock investments.

But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike. The tobacco industry boasts strong companies that are objectively stable with high yields. The best performers are usually the most stable, own the largest market share and have an eye on the horizon. While growth and returns are never guaranteed, you should play to win — always stay abreast of developments in the regulatory space.

Real-time data, and historical insights, all without the drag of manual data entry. With Wisesheets, you’re not just analyzing; you’re strategizing with confidence. Long gone are the days when tobacco stocks were the go-to for investors seeking steady growth and juicy dividends. Despite the industry’s weak revenue and profit development, investors continue to be drawn to these stocks due to their consistent dividends, profitability, and solid profit margins. Investors believe that stronger growth will eventually be catalyzed by next-generation products.

The Tobacco industry has a total of 10 stocks, with a combined market cap of $440.91 billion, total revenue of $99.14 billion and a weighted average PE ratio of 20.25. According to the Centers for Disease Control and Prevention, the number of tobacco farms in the United States decreased from 93,530 in 1997 to roughly 3,000 in 2022. Nonetheless, the USA was the world’s fifth-largest producer of tobacco in 2021, harvesting 431.6 million pounds in 2022, compared to 1.74 billion pounds in 1997. Seventy-seven percent of U.S. production came from North Carolina or Kentucky. Sales of cigarette packs fell from 12.5 billion to 9.1 billion packs between 2015 and 2021, a 27% decrease. In 2024, the average cigarette tax in each state was $1.93, while the federal tax was $1.01.

• It holds a 10.2% interest in the world’s largest brewer, Anheuser-Busch InBev.
• After completing my BBA degree in Finance at the Schulich Program in Toronto, Canada.
• The company also has a 35% investment stake in e-cigarette maker JUUL, and a 45% stake in the Canadian cannabis producer Cronos Group (CRON).
• Historically reliable dividends and profits combined with next-generation products may result in stronger growth.
• It has an integrated offline distribution and “Branded store plus” retail model tailored to China’s e-vapor market.

British American Tobacco (BAT), a behemoth in the tobacco industry, boasts a history stretching back to 1902. Headquartered in London, England, BAT has risen to become the world’s largest tobacco company by net sales as of 2021. Its global footprint covers around 180 countries, offering a wide array of products from cigarettes to innovative nicotine solutions.

The company also sells a wide range of products, including cigarettes, vaporizers, chewing tobacco, and heated tobacco. Buying shares of BAT is the easiest way to gain portfolio exposure to the whole tobacco industry via just one stock. British American Tobacco (BAT) has also become a titan of the industry, fueled by its $49 billion acquisition of Reynolds American in 2017.

Regulatory and consumer preference changes continue to plague the group. On July 22nd, 2025, Philip Morris shared its Q2 results for the period ending June 30th, 2025. For the period, the company posted net revenues of $10.1 billion, up 7.1% year-over-year. This was a weaker performance compared to the majority of the last couple of quarters, when Universal was able to grow its revenues on a year-over-year basis. Universal Corporation is a market leader in supplying leaf tobacco and other plant-based inputs to consumer product manufacturers.

The company also has a 35% investment stake in e-cigarette maker JUUL, and a 45% stake in the Canadian cannabis producer Cronos Group (CRON). However, investors must keep in mind that the total volumes for the industry are in fairly steep decline, and all indications are that this is irreversible. This sort of decline in an industry’s customer group generally spells trouble for the companies that operate within it. Its high operating profit margin, which topped 45% on an adjusted basis in 2024, helps to ensure the dependability best tobacco stocks of the quarterly payout.