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Find out which sin stock trader Steve Grasso says is not only one of his favorite yield plays but a core holding in his portfolio, right now.
Grasso, who is, director of institutional sales trading at Stuart Frankel, says if you’re looking for yield – look no further than Altria, which yields about 5%.
And he says, don’t worry that Philip Morris cut its full year earnings estimates for the second time this year; he says that shouldn't spook you. Philip Morris , which sells the same brands of cigarettes as Altria but outside the US, cited a stronger U.S. dollar and waning sales in Europe as the drags.Neither of those headwinds impact Altria. In fact that’s exactly why Grasso likes it – because Altria is a sin stock with US focus.
“It’s one of my core holdings,” says Grasso. “And until the market is no longer range bound – I’m staying with it."
* You can find our conversation about Altria about 2:15 into this video clip.
Posted by CNBC's Lee Brodie
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