Universal Corporation - UVV

Universal Corporation, stock ticker UVV, is where it's at. A current 4.23% dividend yield, $0.49 cents per quarter and a market cap of 1.08 billion dollars is enough to get excited about. Your Roth IRA needs a company like this one. Most recently, UVV announced that the Board of Directors approved a program for the repurchase of up to $100 million of Universal Corporation common stock. They currently have 23.2 million common shares outstanding. UVV's board also increased the regular quarterly dividend on the common shares of UVV by one cent to $0.49 per share. Hey, a penny saved is a penny earned. Each dividend increase is something to be happy about. The current dividend increase is payable February 13, 2012, to common shareholders of record at the close of business on January 9, 2012.

Before we get ahead of ourselves, let's discuss more about the company. UVV is a global leaf tobacco merchant and processor. Universal’s primary subsidiary is Universal Leaf Tobacco Company. The company involves buying, processing, packing, storing, shipping, and financing leaf tobacco for sale to, or for the account of, manufacturers of consumer tobacco products throughout the world. UVV operates in North America, South America, Africa, Europe, Asia, Dark Air-Cured, Oriental, and Special Services. They are primarily involved in flue-cured and burley leaf tobacco operations for supply to cigarette manufacturers. Also, dark air-cured tobacco principally to manufacturers of cigars, pipe tobacco, and smokeless tobacco products, and Oriental supplies oriental tobacco to cigarette manufacturers. If you would like to learn more about UVV's history then click here. They have been around since World War I and have had many, many years of profits.

UVV is an inexpensive quality business that is consistently profitable in an industry that will stick around well beyond your working career and retirement years. That is pretty much all there is to a long equity investment.

If you invest in UVV expect solid dividends in this tobacco stock which has no tobacco litigation risk! You may ask, why is that? Well, because UVV sells leaf to manufacturers and does not sell to the consumer market. The company is internationally diversified and provides a broad base of services to tobacco farmers.
UVV is one of those long running, what I like to call, boring stocks. Much like those rotisserie ovens, all you have to do is purchase this stock, then Set it and Forget it! Let it grow in your Roth IRA for years.

UVV has increased their dividend payout for 40 years, which makes this company a dividend aristocrat! It is low priced based on earnings and book value. Not bad for a boring stock! This company has low leverage and great fundamentals - both when comparing the share price with the income statement and balance sheet. UVV generates plenty of cash from operations to sustain this great dividend.

If you feel bad or uncomfortable when investing in tobacco companies then please feel free to disregard this analysis and do what's right for you, but remember it's all about creating a safe nest egg for your retirement years. When investing in UVV or even MO, consider this! Many people will choose to smoke regardless of any warning labels that the FDA may regular and much of UVV's income comes from outside the United States.

Enjoy the video below and thanks for your time and support. Have a great remainder of the weekend and a profitable week! Reinvest those dividend and continue to invest as much as you can now for unlimited gains and wealth for your retirement years.