1. Reynolds American ( RAI), a holding company, operates in two segments: RJR Tobacco and American Snuff. The company's operating subsidiaries in the U.S. are cigarette manufacturer Reynolds Tobacco Company and smokeless tobacco products manufacturer American Snuff Company.

The company has a dividend yield of 5.40%. Reynolds went ex-dividend recently and paid its shareholders a dividend of 53 cents per share. The company has announced to pay a dividend of 53 cents per share ($2.12 per share on annualized basis) on July 1, 2011, indicating an 8% increase from 49 cents per share paid through the end of 2010.

Net sales for the first quarter of 2011 was reported at $1.99 million, up 0.3% from the year-ago quarter. Net income stood at $353 million, or 60 cents per share, compared to $82 million, or 14 cents per share, in the same quarter of the prior year. Total growth bands increased to 16.3% from 13.6% in the year-ago quarter. Looking ahead, the company reaffirms adjusted earnings per share to range from $2.6 to $2.7, excluding implementation costs related to plant closures and tax items.

Of the 11 analysts covering the stock, 36% assign a buy rating, while 55% rate a hold. Analysts polled by Bloomberg expect the stock to gain an average 2.2% to $39.00 in the upcoming 12 months.

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