• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Consumer Staples

Drinking, Smoking and Gambling Pay Well for Some

Psalm $ -- find a dividend payer with a good chart and ignore how it makes money.
By BRUCE KAMICH
Jan 24, 2017 | 09:07 AM EST
Stocks quotes in this article: DEO, LVS, MO

Shubhankar Adhikari in a story yesterday covered the fundamentals behind three so-called sin stocks that had stable dividends, but I find that picking good investments should go beyond looking for companies with dependable dividend streams. I want to find companies that also have good looking charts and indicators.

Consider it another filter to try to find the best of the best. Let's look at Altria Group  (MO) , Diageo (DEO) , and Las Vegas Sands (LVS) .

In this one-year daily chart of MO, above, we can see that prices have recently broken out to new highs, besting the July peak. MO is above the rising 50-day moving average and the rising 200-day moving average line. A bullish golden cross of these averages can be seen in late December.

The On-Balance-Volume (OBV) line has made a new high, with the price action telling us that volume is confirming the rally and that buyers have been aggressive. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since early December and just signaled a fresh go long crossover.

This three-year weekly chart of MO, above, is pretty impressive. Prices have doubled since early 2014. MO just made a new high with its continued rally above the rising 40-week moving average line.

The weekly OBV line is positive and the moving average convergence divergence (MACD) oscillator has been bullish since early December. The next upside price objective for MO is the $80 area.

This one-year daily bar chart of DEO, above, is mixed. DEO has made big rallies and big declines. Prices have retraced about half of its October-November decline. DEO is above the now-rising 50-day moving average line, but is below the still-declining 200-day average line.

Prices could fail here or put above the 200-day line and volume is likely to be the determining factor. The OBV line has only inched up a little since early December, after declining from July. Buying interest has picked up a little, but not enough to inspire me. The MACD oscillator is the zero line, but the two moving averages that make up the indicator are narrowing towards a possible crossover.

This three-year weekly chart of DEO, above, could use some buying. Prices are testing the falling 40-week moving average line from below. The weekly OBV line shows some improvement but nothing table-pounding. The weekly MACD oscillator just crossed to a cover shorts buy signal and is a long way from an outright go long message.

In this one-year daily chart of LVS, above, we can see a chart with room to move higher. Prices made a low in late June/early July and rallied to late November. Prices have pulled back and corrected those gains. LVS is between the declining 50-day average and the rising 200-day average line.

As prices declined in December, the OBV line remained very steady and suggests that owners of LVS were not aggressive sellers. In the bottom panel there is a small bullish divergence between the lower lows in price in December and the higher lows from the indicator.

In this three-year weekly chart of LVS, above, we can see a large potential bottom formation the past two years. Prices are above the rising 40-week moving average line. The weekly OBV line turned up in April, signaling aggressive buying, and has turned flat in recent months.

The MACD oscillator is above the zero line, but is currently pointed down. Bottom line: LVS is probably going to trade sideways for a while before we see renewed strength.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | U.S. Equity | Consumer Staples | Markets | Entertainment | Gaming | How-to | Risk Management | Stocks

More from Consumer Staples

I'm Intrigued as Kellogg Splits Into 3: Here's the Play

Stephen Guilfoyle
Jun 21, 2022 10:15 AM EDT

The company, despite a nice looking first quarter, has not been in the greatest shape fundamentally.

Any Bounce in This Nasty Bear Market Should Be Viewed With Caution

Bob Byrne
May 11, 2022 8:30 AM EDT

For now, any rebound is a short-term trading opportunity and nothing more.

3 Name-Brand Stocks That Traders Might Take a Stab at in This Rotten Market

Bob Byrne
May 9, 2022 8:30 AM EDT

Rather than try to catch falling knives, traders should give a look at Merck, IBM and Procter & Gamble.

Strange Options Moves on Staples ETF Sparks a Trade Idea

Mark Sebastian
May 4, 2022 2:25 PM EDT

Here's how I would play the XLP right now.

Ketchup? Check. Jelly? Check. Beer? Of Course. Let's Go Get Some Staples

Ed Ponsi
Apr 28, 2022 10:30 AM EDT

Names like J.M. Smucker and Kraft-Heinz may seem dull, but they provided needed stability in this kind of market. Let me show you why it's time to get back to the basics.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 04:51 PM EDT PAUL PRICE

    We should be in for better starting soon.

    Window dressing tomorrow, the last day of ...
  • 11:56 AM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    Check out what's going on in the Stocks Under $10 ...
  • 12:04 AM EDT PAUL PRICE

    Two Good Signs -- Especially for Small-Cap Investors

  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login