The first analysis is about the tobacco company British American Tobacco.
The most important key data can be found in the picture above. Below you will find some further thoughts. (The moral aspect is not mentioned).
For years, the number of smokers in the world has been steadily decreasing. So why invest in tobacco when countries will ban it or tax it more in the future?
1) In my opinion, there will always be smokers and this will not change.
2) Tobacco companies can increase prices at the same time as taxes. However, this will stop very few smokers.
3) Even if it seems so to some, the corporations are not asleep! They are aware of the above mentioned decline. They are always working on alternatives (the so-called Risked Reduced Products).
4) Certain tobacco companies are also involved in companies that are in the cannabis business. The prognosis for this business is extremely promising and I doubt that the tobacco companies will not want to get a piece of the pie. Especially when you consider that tobacco is also involved, depending on the type of consumption.
In my opinion, entering the industry is worthwhile for anyone with a bit of patience and no moral qualms about it. Especially with a dividend payout of 6 to 7%!
Instagam: SSP_Switzerland