With governments around the world pushing to encourage people to give up smoking, the Tobacco sector has been unfashionable for many years. However, Imperial Brands and British American Tobacco continue to be very valuable businesses which are both constituents of the FTSE 100. Some investors also avoid this particular sector for ethical reasons. Given the mature nature of the industry, companies operating within it tend to be highly cash generative and this often allows solid dividend payments to be made. This is one reason why some defensive investors remain keen on the sector.
