Companies that produce and sell alcohol, operates casinos and sell tobacco products are called as “Sin” stocks. In this sector, tobacco stocks usually have high dividend yields and steady growth. Tobacco companies make high profit margins and their products generally sell well despite high taxes as people become addicted to them.

Casino stocks are volatile and their performance is highly related to the state of the economy. Beer and other alcohol product sales tend to be more stable even in recessions and go higher when the economy is in expansion mode. One reason for this could be that prices of beer for example are relatively cheap and consumers are able to afford it even in recessions.

XX sin stocks trading on the markets are listed below with their current dividend yields:

1.Company: Lorillard Inc (LO)
Current Dividend Yield: 5.21%
Sector: Tobacco

2.Company: Altria Group Inc (MO)
Current Dividend Yield: 5.26%
Sector: Tobacco

3.Company: Reynolds American Inc (RAI)
Current Dividend Yield: 5.38%
Sector: Tobacco

4.Company: Molson Coors Brewing Co (TAP)
Current Dividend Yield: 2.84%
Sector: Beverages (Alcoholic)

5.Company: Constellation Brands Inc (STZ)
Current Dividend Yield: No dividends paid
Sector: Beverages (Alcoholic)

6.Company: Las Vegas Sands Corp (LVS)
Current Dividend Yield: 1.90%
Sector: Casinos & Gaming

7.Company: MGM Resorts International (MGM)
Current Dividend Yield: No dividends paid
Sector: Casinos & Gaming

8.Company: Wynn Resorts Ltd (WYNN)
Current Dividend Yield: 1.61%
Sector: Casinos & Gaming

9.Company: Beam Inc (BEAM)
Current Dividend Yield: 1.45%
Sector: Beverages (Alcoholic)

10.Company: Brown Forman Corp (BF-B)
Current Dividend Yield: 1.57%
Sector: Beverages (Alcoholic)

Note: Dividend yields noted are as of Jan 25, 2013

Beam increased its dividends by 10% when it reported the latest earnings last week. Brown Forman is the owner of the world famous Jack Daniel’s Tennessee Whiskey brand.

Disclosure: No Positions