Sinful but steadfast
The so-called ‘sin’ sectors – drinking, gambling and smoking – are not to all investors’ tastes, but they do tend to offer good long-term returns, although it’s worth remembering that they are a long-term favourite of chancellors targeting addictive habits.
Returns from these sectors have historically been good. Tobacco averaged a total shareholder return (TSR) of over 13 per cent over 30 years, mainly yield). In the gaming sector, leading stock Flutter (FLT) has rewarded investors with an average 22 per cent TSR since the financial crisis, and the drinks sector has managed near-double-digit annual returns in the same period.
