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UVV - Universal Corp


Palantir

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I am surprised to see there is no conversation on this topic. This firm is a tobacco processor rather than a cigarette manufacturer, so it does not have the same egregious gross magins of the PM and LO's of the world. But this is still trading at a roughly an FCF Yield of 11% or so and pays a decent dividend.

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  • 2 years later...

I'm interested in initiating a position in Universal Corporation. Seems to be a strong candidate at the moment.

 

It meets all the criteria for Ben Graham's "Defensive Investor" status anyway.

 

Strong dividend, low P/E, good level of assets to debts, they have a steady role as a supplier to Altria Group (Philip Morris Tobacco). Although many people see the tobacco industry declining, the number of cigarettes smoked worldwide continues to increase.

 

I think it could be a good steady low risk stock to hold long term over the years and collect a good dividend.

 

What do others think, is this a good option?

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