By Josh Kincaid
Summary
Protecting your portfolio during economic uncertainty with sin stocks
Sin clauses, SRI and ESG may come at a financial cost
Sin stock’s benefits in addition to being recession-proof, generating strong and consistent earnings, and having limited competition
The Food and Drug Administration (FDA) is expected to make a critical ruling on vaping on Thursday that could potentially create some extreme volatility among tobacco and cannabis stocks.
Investing for income is a difficult task right now. The Federal Reserve has kept interest rates at zero since the coronavirus pandemic, leading to lower yields across fixed income. Stocks aren’t much better, as record-high share prices has reduced the average dividend yield of the S&P 500 Index to just 1.3%.
Trait Biosciences, a leading cannabinoid biotechnology research organization, announced that it has completed a C$31 million ($25.46 million) Series A financing round led by the corporate venturing unit of British American Tobacco (NYSE: BTI), Btomorrow Ventures, and backed by Gotham Green Partners.
In general, Dividend Aristocrats are the foundation for the portfolios of most serious dividend growth investors. European Dividend aristocrats are typically blue chip stocks that have proven to reward shareholders with rising dividends over a long period.