Ethical investing is a touchy subject and perhaps one of the most controversial subjects to write about. Whether it be tobacco, oil, arms, gambling or alcohol, many investors will steer clear of these dubious sectors, instead favouring companies which try to be good corporate citizens.

Now, I'm not trying to glorify, or support the tobacco and arms industries. However, figures suggest that over the past five decades or so, the tobacco industry has been the market's best performing sector. Aerospace & Defence has also been a strong performer. Lets take a deeper look.

Second to none

Altria is the owner of Philip Morris USA, the U.S. arm of Philip Morris International. Philip Morris USA and Philip Morris International separated for legal reasons.

Altria has a StockRank of 92 thanks to robust momentum (91) and quality (90) ranks but a low value (54) rank. Indeed, at present levels Altria looks expensive as it trades at a forward P/E of 17.0, compared to the market median of 16.2. The company also has a sky-high price to book ratio (market median: 2.1 vs. MO: 21.1) and price to sales ratio (market median: 2.1 vs. MO: 3.8).

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But sometimes you have to pay for quality. Over the past four-and-a-half decades, Altria's (formerly Philip Morris) shares have returned 300,000% including dividends -- that's not a typo. Go back nearly six decades and figures suggest that $1,000 of Philip Morris stock purchased during 1957, would be worth about $5.8 million today, a return of 579,900%.

Philip Morris and Altria have been able to achieve these returns due to their ownership of the infamous Marlboro brand of cigarettes, one of the world's most valuable brands. What's more, cigarettes cost almost nothing to make but can be sold at a huge profit. Altria's operating margin (26.9%) is 400% above the market median (5.3%) and return on capital (23.2%) is in the top 10% of the market (market median 1.8%).cdVo6Idx27pEhsklZfRHC-S2xthGmw6iAUhTkUcj

Altria is only responsible for Philip Morris USA. The international…

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