Tobacco Stocks Smoking Today

The tobacco stocks are higher today, on back of the news that Reynolds American, Inc. RAI is raising its dividend output to 80% of net income, as opposed to 75% of net income in previous years. Stocks like Altria MO and Philip Morris International Inc. PM are higher today on the back of this news. Tobacco stocks have been hit recently, with MO down about 10% from its 52 week high. If you are looking to build a position in these names, as well as adding to existing positions, these levels provide good support. Disclosure: long MO