With some strong downward pressure over the last few months due to the threat of menthol cigarettes being banned, Lorillard, Inc.’s (LO) stock price has not seen the same run-up in price that most of the market has experienced in 2013. As a result of this lack of run-up in price, I decided to purchase LO yesterday. I purchased 39 shares for $1,513.86, including transaction fees, giving me a cost basis of $38.82 per share. This purchase gives me an additional $85.80 in annual dividends, increasing my projected forward 12-month dividends from $801.28 to $887.08.
A quick business summary from Bloomberg:
“Lorillard, Inc. manufactures and sells cigarettes. The Company produces cigarettes for both the premium and discount segments of the domestic cigarette market for sale to distributors and retailers in the United States.”
I have updated my Investments page with this transaction.