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5 Sin Stocks for Dividend Investors

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Much has been made of the rise of socially conscious investing – investing according to ethical or social principles. And for good reason. One out of every six dollars managed professionally in the U.S. today is invested using a strategy that considers social good as well as financial return.

But there is plenty of money to be made in so-called sin stocks, too. These shares are issued by companies with significant revenues from tobacco, alcohol or gambling. In some cases, what makes them “sinful” also makes them a good choice for investors. Tobacco companies, for instance, have a solid base of dependent, brand-loyal customers who buy the product regardless of economic conditions. These five stocks should log decent price appreciation over the next three years. But even if share prices stall, they should still pay off—all of the companies are replete with cash and boast a record of increasing dividends.

Stocks are listed alphabetically. Share prices and other data are as of December 21. Price-earnings ratios are based on estimated year-ahead earnings from analysts tracked by Zacks Investment Research.

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