As of Tuesday, you'll have to cross a border to buy a clove. The U.S. Food and Drug Administration's ban on flavored cigarettes went into effect and prohibits the sale of candy and fruit-flavored cigarettes. Authorized under the Family Smoking Prevention and Tobacco Control Act, the measure is intended to reduce the number of children who take up the habit.

Under the new ban, cigarettes that include "an artificial or natural flavor (other than menthol) or an herb or spice" cannot be sold in the United States. The long, but not exhaustive list of flavors, consists of strawberry, grape, orange, clove, cinnamon, pineapple, vanilla, coconut, licorice, cocoa, chocolate, cherry and coffee.

"Income investors have to be very careful when searching for yield; many high-yielding stocks have turned in disastrous performances over the last year," cautions Chuck Carlson.

In his The DRIP Investor he adds, "That's what makes Philip Morris International (NYSE: PM) so attractive. The issues stands as as one in which investors can be confident of a steady dividend stream."

"The stock's current yield of 5% is especially attractive in this environment. And the dividend is taxed at the current preferential tax rate of just 15%, giving it an extra appeal relative to yields on fixed-income investments. Furthermore, the dividend is safe.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Express Co. (NYSE: AXP) Q3 results were dragged down by charge-offs due to the recession.
• Apple Inc. (NASDAQ: AAPL) posted stronger-than-expected results due in part to iPhone sales.
• Boeing Inc. (NYSE: BA) posted a bigger-than-estimated earnings decline due in part to the strike.
• Coach Inc. (NYSE: COH) reported Q1 earnings that were in line with Wall Street expectations.
• Freeport-McMoRan (NYSE: FCX) Q3 results fell more than expected due to lower copper prices.
• Kimberly-Clark Corp. (NYSE: KMB) edged past estimates but felt the squeeze from exchange rates.
• McClatchy Co. (NYSE: MNI) reported dismal Q3 results as advertising revenues dry up.
• Microsoft Corp. (NASDAQ: MSFT) posted solid Q1 results but offered conservative guidance.
• New York Times Co. (NYSE: NYT) reported awful earnings and announced that it might cut its dividend.
• Philip Morris International Inc. (NYSE: PM) topped profit estimates and maintained its guidance.
• RadioShack Corp. (NYSE: RSH) better-than-expected results were driven by sales of digital TV converters.
• Sun Microsystems Inc. (NASDAQ: JAVA) warned of a Q1 loss and acquisition-related charges.
• Texas Instruments Inc. (NYSE: TXN) missed estimates due to slowing mobile phone sales.
• United Parcel Service (NYSE: UPS) reported better-than-expected Q3 earnings.
• Yahoo! Inc. (NASDAQ: YHOO) earnings tumbled in Q3 and it announced layoffs.

For more earnings highlights from this week, see Amazon, McDonald's, Mattel, Pfizer, AT&T, Sony and others.

Watch for upcoming quarterly reports from Verizon (NYSE: VZ), Estée Lauder (NYSE: EL) , US Steel (NYSE: X), Aetna (NYSE: AET), Procter & Gamble (NYSE: PG), Qwest (NYSE:Q), Comcast (NASDAQ: CMCSA), Kellogg (NYSE: K), Kraft Foods (NYSE: KFT), MetLife (NYSE: MET), Moody's (NYSE: MCO), Office Depot (NYSE: ODP), Avon (NYSE: AVP), CBS (NYSE: CBS), CVS Caremark (NYSE: CVS), Sun Microsystems (NASDAQ: JAVA), Eastman Kodak (NYSE: EK), Motorola (NYSE: MOT), Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), Washington Post (NYSE: WPO).

Visit AOL Money & Finance for more earnings coverage.

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"If John McCain wins, there's a greater likelihood the reduced-dividend and capital gains tax rate will be extended; in that case, I would favor a tax-advantaged fund such as the Eaton Vance Tax-Advantaged Dividend Income Fund(NYSE: EVT)," says Carla Pasternak in High Yield Investing.

"Eaton Vance Tax-Advantaged Dividend Income Fund has a solid tax-advantaged yield of more than 11%, of which the entire 2007 amount qualified for the reduced dividend tax rate of up to 15%.

"EVT focuses on strong dividend-growers and undervalued stocks with room to move. About 80% of the fund's holdings are in common stocks, with the rest of the portfolio in high-yielding preferred shares.

"Top holdings include oil giants Chevron and ConocoPhillips, as well as utilities like Edison International and dividend stalwart Philip Morris.

"The fund does have large exposure to the financial sector, as it accounts for about 20% of the portfolio. Due to the turmoil in the sector, EVT has seen its share price sink amid the credit crisis.

"While we can't be sure of when the crisis in the financial industry will subside, we can be assured this fund will benefit once things turn around. Meanwhile, investors are able to lock in a juicy double-digit yield.

"Investors seeking international exposure will also do well with this fund. Less than half (45%) of the fund is invested in the U.S. The remainder is spread evenly across Europe's major economies, including Germany, the U.K. and Finland.

"With a solid record for dividend growth, and selling at a steep discount of about -20% to the value of its underlying portfolio assets (meaning investors can pick up a dollar's worth of assets for only 80 cents), EVT might be attractive no matter who assumes the presidency.

"However, due to its tax-advantaged nature, having a Republican in the White House who favors keeping the current reduced-dividend tax would be a direct benefit to EVT investors."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

This post is part of a series on some of the most memorable companies that have disappeared.

The history of General Foods can be traced back to the Postum Cereal Company, founded by Charles William Post, inventor of Postum and Grape Nuts, in 1895. Wall Street player E.F. Hutton in time became the chairman, and he initiated a series of acquisitions beginning in 1925: Jell-O, Minute Tapioca, Log Cabin, Hellmann, Calumet Baking Powder, and Birdseye. It was after the Birdseye acquisition in 1929 that the food conglomerate became General Foods.

Among General Foods' many product offerings were Sanka decaffinated coffee and the astronaut's favorite, Tang. General Foods also continued to make acquisitions, including the makers of Kool-Aid in 1953, the Burger Chef restaurant chain in 1968, and Oscar Mayer in 1981.

But late in 1985, General Foods was itself acquired by Philip Morris Cos., which later became Altria Group (NYSE: MO), in the largest non-oil acquisition to date. When Philip Morris acquired Kraft in 1988, the two food companies were merged. In 2007, Altria spun off Kraft Foods (NYSE: KFT), which now owns such former General Foods brands as Jell-O, Kool-Aid, and Maxwell House coffee. And it was announced in late 2007 that Post Cereals, including Grape Nuts, would be sold to Ralcorp Holdings (NYSE: RAH).

MOST NOTEWORTHY: Horace Mann, Sonus Networks and Mellanox were today's noteworthy initiations:

• Keefe Bruyette views Horace Mann (NYSE: HMN) as fairly valued and expects the competitive personal lines environment and deteriorating loss trends to act as strong headwinds. Shares were assumed with a Market Perform rating and $19 target.
  
• Thomas Weisel initiated Sonus Networks (NASDAQ: SONS) with a Market Weight rating and $3.50 target and believes management's expectation for 20% FY08 revenue growth is too aggressive.
  
• Susquehanna expects Mellanox (NASDAQ: MLNX) to benefit from the growing end markets for InfiniBand technology, and started shares with a Positive rating and $20 target.

OTHER INITIATIONS:

• Jefferies initiated McKesson (NYSE: MCK) with a Buy rating and $67 target.
  
• Philip Morris (NYSE: PM) was initiated at JP Morgan with an Overweight rating and $62 target, and added to the firm's Analyst Focus List.
  
• Baird started Pharmasset (NASDAQ: VRUS) with a Neutral rating and $21 target.
  

Wall Street has speculated for some time that Altria's (NYSE: MO) international units will be spun-off from its domestic tobacco operations. The company's board believes that this will allow overseas operations to work without the baggage of regulations and lawsuits that the firm faces in the US.

According to The Wall Street Journal, "the separate entity, for example, would be exempt from US tobacco regulations and out of reach of American litigators. Importantly, its practices would no longer be constrained by American public opinion, paving the way for broad product experimentation." Put another way, the international operations will be able to make stronger, and perhaps more dangerous tobacco products, for large markets in Europe and Asia.

China will be a major target for the new public company to be called PMI. Other large markets the company will focus on include Indonesia and Pakistan.

The Altria international operations are about four times as large as those in the US. That alone may make the case for the company to be independent.

But, at the end of the day, the name of the game is selling much stronger cigarettes to people who want them in markets where regulation is lax. A good way to make money, but bad for the lungs.

Douglas A. McIntyre is an editor at 247wallst.com.

The Philip Morris USA unit of Altria Group (NYSE: MO) has decided to launch a smokeless product under the Marlboro name. It is a substantial risk.

Forty percent of the cigarettes sold (WSJ--subscription required) in the U.S. are Marlboros. The brand still evokes the tough cowboys who used to ride through its TV commercials. They rode the open American range, they were independent, and when they died of lung cancer, it was off-screen.

The new product can be used in offices and restaurants since it does not violate any of the smoking laws enacted in recent years. The product is not "wet" like certain other forms of smokeless tobacco. The users are not likely to spit juice all over the floor. Hitting a spitoon is a lost art.

But, smokeless tobacco can cause mouth and throat cancer, a particularly grim way to die.

Sucking nicotine in through a little pouch placed in the mouth would seem to erode the strong cowboy image. Of course, it will kill you all the same.

Douglas A. McIntyre is a partner at 24/7 Wall St.

On Friday, a federal appeals court judge ruled that Altria Group's (NYSE:MO) Philip Morris will not be able to sell low-tar or no-tar cigarettes anywhere in the world. In August, it was ruled that the company could not sell low-tar or no-tar products in the United States. Judge Gladys Kessler (great name, by the way) said in her ruling: "To rule otherwise would ... allow the defendants to spread fraudulent and misleading health messages and descriptors about their products throughout the world, even though they are prohibited from doing so in the United States."

To me, the fact that Philip Morris even went to court for this is indicative of just how serious they are about their mission statement as it's listed on the website: "Our goal is to be the most responsible, effective, and respected developed manufacturer of consumer products, especially products intended for adults."

Note to CEO Mike Szymanczyk: There is nothing responsible or respectable about seeking to market products internationally as no-tar when it has been ruled in the United States that such a description is "fraudulent and misleading" because the implication is that it is somehow a safer cigarette.

Note: The Daily Option Update is provided by Options Specialist Paul Foster of theflyonthewall.com.

Volatility Index S&P 500 Options-VIX down .14 to 10.28.

Amazon.com Inc. (NASDAQ:AMZN) - puts more active than calls as prices increase on purchase for Hedges. Amazon was trading up .71 to $38.38 around 2 p.m.. Amazon is expected to report EPS of $0.22 after the close. Lazard has a Hold rating on Amazon said on 1/31/07, "At current price levels, we believe the stock largely discounts strong growth, operating margins expansion, and improving free cash flow generation." Amazon call option volume of 43,043 contracts compares to put volume of 60,717 contracts. Amazon February option implied volatility of 58 is above its 26-week average of 39 according to Track Data, suggesting larger price fluctuations.

Neurochem Inc.'s (NASDAQ:NRMX) May option implied volatility keeps Climbing into Spring Risks. Neurochem issued a press release this morning indicating results from the first phase 3 study of NRMX's Alzhemed for the treatment of Alzheimer's disease is expected in the spring of 2007. Neurochem and partner Johnson & Johnson (NYSE:JNJ) have a PDUFA date for Kiacta for AA Amyloidosis on 4/16/07. Neurochem call option volume of 4,859 contracts compares to put volume of 5,129 contracts. Neurochem May call option implied volatility is at 152; puts are above 211 according to Track Data, indicating large price fluctuations. NRMX puts are expensive because Neurochem is difficult to borrow.

Option volume leaders today were: Altria Group Inc. (NYSE:MO), Google Inc. (NASDAQ:GOOG), Equity Office Properties Trust (NYSE:EOP), Bristol Meyers Squibb Co. (NYSE:BMY) and Sepracor Inc. (NASDAQ:SEPR).

In line with the market maxim, "sell on the news," numerous financial media pundits have looked at tomorrow's earnings report from Altria Group (NYSE: MO), and its likely announcement to restructure, as a reason to sell.

Going counter to this, Tony Sagami, editor of The Asia Stock Alert, has just issued a "flash alert" telling his newsletter subscribers to buy in advance of the meeting.

He explains, "Altria is going to report its fourth quarter results on January 31. Sure, Altria will probably deliver a dynamite earnings report, but the stock-jumping news that I can't wait to hear are Altria's reorganization plans."

He notes that in addition to its Phillip Morris tobacco operations, Altria owns 87% of Kraft Foods and 29% of SABMiller, the second largest brewery in the world. He says, "I expect Altria to announce plans to spin-off those two units which should unleash billions of dollars of additional shareholder value."

Indeed, he feels, "It is this reorganization that makes now the time to buy Altria. He notes that Altria has wanted to split up its company for a while, but couldn't because of its tobacco lawsuits. Now, however, he notes, "Those litigation threats have largely been settled or dismissed, paving the path for Altria to reorganize into four separate divisions: Kraft, SABMiller, Philip Morris USA, and Philip Morris International."

A federal judge today granted a group "class action" status in a suit that claims the cigarette companies fooled customers by calling some of their products "light." The argument is simple: The big tobacco companies were trying to sell "light" as safer. Smokers figured that it was OK to have a coffin nail if it was manufactured with less poison in it.

The suit seeks up to $200 billion in damages. If the plaintiffs can show that the tobacco companies planned the whole thing, the suit might take on racketeering status, which could triple damages.

Altria Group (NYSE: MO), the parent of Philip Morris, watched its stock drop almost 5% on the news, down to $78.64 as of 1:55 PM. The company has been trading near its 52-week high of $85.00.

With such a big suit, what isn't Altria's stock down more? Because suits filed in the past seeking damages for heath issues arising from smoking have not won big damages from the tobacco companies. Courts and juries have been reluctant to blame the cigarette manufacturers for people's bad habits, especially when each cigarette package says that smoking will kill you faster than stepping in front of an oncoming train.

While all large suits represent some risk, Wall Street is clearly not betting that there will be a full reversal of the way the judicial system views the liabilities involved in cigarette smoking. Tobacco may be a dirty business, but so far, the actions of cigarette companies are not viewed as criminal.

Douglas McIntyre is a partner at 24/7 Wall St.