Bank of America: Two stocks that may benefit from Trump's tariffs

In an effort to protect US industries from competition from other countries, particularly in the area of trade, President Donald Trump has unveiled a sweeping tariff plan. This plan was to include additional tariffs on goods imported from Mexico, Canada and China. Although some steps have been temporarily postponed after talks with some world leaders, including the Mexican President, there are still companies that can gain a competitive advantage in these conditions.

These firms have the potential to take advantage of increased import costs and strengthen their position in the domestic market, thereby benefiting US industry.

Altria Group $MO: Tobacco giant with growth prospects

Virginia-based Altria Group is known for its diverse portfolio of tobacco products, which includes iconic brands such as Marlboro, Black & Mild cigars and Copenhagen smokeless tobacco. In addition to traditional tobacco, the company is also pursuing the future of smokeless alternatives through brands such as U.S. Smokeless Tobacco Company and NJOY, an FDA-approved e-cigarette brand.

Altria is currently valued at $88.9 billion, and its stock has risen approximately 31% over the past year, outperforming the broader S&P 500 index, which has risen 22.8%. The company has maintained a long-term reputation for paying high dividends, making it attractive to investors seeking stable income. Altria regularly raises dividends, paying a quarterly dividend of $1.02 per share in January 2024, which represents an annual yield of 7.60%.

Given Trump's tariff policies, Altria is expected to benefit from limited competition in the tobacco market, which may lead to a strengthening of its domestic position.

Molson Coors Beverage Company $TAP: U.S. brewer with opportunities in tariff changes

Molson Coors, based in Colorado, is a brewing company with more than two decades of history and a portfolio of iconic brands such as Coors Light, Miller Lite and Coors Banquet. The company is constantly adapting to new trends in the marketplace and today offers a wide range of beverages, including Vizzy Hard Seltzer and Five Trail whiskey.

Although Molson Coors stock has posted a decline of approximately 9.2% over the past year, the company is still in a solid financial position with an annual dividend of $1.76 per share, yielding a solid 3.24%. The company has focused on share buybacks in recent months, increasing shareholder value.

Trump's tariff policy, which raises the price of beer imports from Mexico, could give an advantage to U.S. brewers like Molson Coors. Sources say U.S. beer can remain competitive, which could attract more customers and strengthen Molson Coors' brand in its home market.

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Source: msn