Trades – Lorillard, Inc. (LO) Purchase


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.

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  1. I like this stock and I will be buying more shares as long as it will be in my buy zone.

    • I agree with you, Lorillard is a great stock, has room to continue growing their dividends, and has a fairly depressed value over the potential ban on menthol in cigarettes. I don’t believe that ban will ever transpire, but who cares if it provides me with a viable investment selection.

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