--- title: Why are tobacco stocks performing so well? - The Hustle description: Philip Morris and Altria are performing well as investors look for dividends in an inflationary environment. image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/361859062-News-Brief_2022-02-14T012541.973Z.webp --- # Why are tobacco stocks performing so well? ![Trung T. Phan](https://thehustle.co/wp-content/uploads/2020/04/Image-from-iOS-300x300.jpg?width=48&height=48&name=Image-from-iOS-300x300.jpg) [Trung T. Phan](https://hs-sbup.thehustle.co/author/trung-t-phan) [Trung T. Phan Twitter profile ](https://twitter.com/TrungTPhan) Published: February 14, 2022 Updated: October 11, 2023 Tech stocks have taken a beating in 2022, driven in part by fears of rising interest rates. ![Why are tobacco stocks performing so well?](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/361859062-News-Brief_2022-02-14T012541.973Z.webp?width=595&height=400&name=361859062-News-Brief_2022-02-14T012541.973Z.webp) Where have investors gone for refuge? Some have piled funds into very non-tech assets: #### **Tobacco stocks** While the tech-heavy Nasdaq index is down 13% this year, some *smoky* names are doing well, per [*The Wall Street Journal*](https://www.wsj.com/articles/rally-in-tobacco-stocks-could-burn-out-fast-11644678000): - **Philip Morris International** (which sells Marlboro cigarettes outside the US) is up 14% - **Altria** (which sells Marlboros in the US) is up 6% - **British American Tobacco** is up 20% These assets have lagged in recent years. Why? Asset managers that control $12T+ have pledged, on ethical grounds, to not invest in tobacco firms. #### **Why the turnaround?** Tobacco firms, peddling addictive wares, generate predictable cash flows. This *lights up* investor interest because it means juicy dividends that hedge against higher inflation. Per *WSJ*, Philip Morris and Altria will need to make progress in “less-risky” products (AKA e-cigarettes, vaping) to drive real gains. It’s much easier said than done: Altria backed one-time e-cigarette darling Juul, only to see the startup mired in [lawsuits](https://www.nytimes.com/2020/03/30/health/vaping-juul-international.amp.html) for marketing to minors. Longer term, regulators will decide the fate of the tobacco industry. The current uptick may very well *burn out*. Topics: [Stocks](https://hs-sbup.thehustle.co/tag/stocks) [Vice](https://hs-sbup.thehustle.co/tag/vice) ## Follow us on social media prev next - ![What’s kratom, and why is it in trouble?](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/740401164-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-kratom_20230725221327.webp) ### What’s kratom, and why is it in trouble? - ![Budweiser’s dry World Cup saga](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/971162369-HS-News-Brief_2022-12-13T010121.430Z.webp) ### Budweiser’s dry World Cup saga - ![The Dow index got a makeover. 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