Shares of cigarette maker
Reynolds American Inc.
) reached a new 52-week high of $48.18 on Monday, May 13,
following the company's announcement of hiking its quarterly cash
dividend in the annual shareholders meeting.
The closing price of Reynolds American was $47.97 on May 13,
representing a solid 1-year return of about 18.5% and a
year-to-date return of about 11.9%. Average volume of shares
traded over the last three months stands at approximately
On May 9, 2013, Reynolds announced that it will hike its
quarterly dividend by 6.8% to 59 cents payable on Jul 1, 2013 to
shareholders of record at the close of business on Jun 10, 2013.
The stock now has a dividend yield of 5.25%.
The owner of Pall Mall and Camel has increased its dividend
ten-fold since it was listed in NASDAQ on Jul 30, 2004. The
company regularly returns value to its shareholders in the form
of dividends. This is the 36
consecutive quarterly cash dividend paid by Reynolds.
On Apr 23, Reynolds delivered a robust first-quarter earnings
of 72 cents per share, surpassing the year-ago earnings by 14.3%.
Earnings improved on the back of cost reduction efforts, positive
pricing and expense management and were ahead of the Zacks
Consensus Estimate by 4.3%.
Although the Tobacco segment suffered volume declines due to
ongoing anti-tobacco campaigns and rising excise tax imposed by
governments around the globe, the American Snuff segment reported
modest gains on the back of rising market share of the Grizzly
Further, the company has also advanced in the E-cigarette
category and formed a new subsidiary called R.J.Reynolds Vapor
Company, where it has re-engineered and developed its own
patented vapor technology and is testing a new product called
Moreover, Reynolds American spent $300 million to purchase 6.5
million shares under the company's $2.5 billion share repurchase
program in the quarter.
Reynolds currently carries a Zacks Rank #2 (Buy).
REYNOLDS AMER (RAI): Free Stock Analysis
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