Tobacco stock investors don't have a lot of choices these days, so if you're looking to invest in one of these classic dividend payers, two of the first stocks that are likely to come up on your radar are Altria (MO -1.15%) and Philip Morris International (PM -0.74%).
In the closing of the recent trading day, Altria (MO) stood at $57.95, denoting a -0.67% change from the preceding trading day.
Altria Group (NYSE:MO) is a company many investors may not be willing to even consider.
Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide.
In the closing of the recent trading day, Altria (MO) stood at $58.55, denoting a +1.28% change from the preceding trading day.
Since my last writing, MO stock has become technically overbought. Its price has diverged substantially – and also too rapidly in my view - from moving averages and Bollinger bands. At the same time, a few fundamental uncertainties have also surfaced judging by the latest economic data.
The days of individual market activity are gone. Unlike the past few decades, when investors were able to analyze and study markets on an individual chart basis, today's market is as interconnected as it has ever been, driving the importance for investors to really keep up with what's happening in each asset class in relation to others.
Altria balances its shift to smoke-free products with ongoing challenges from illegal e-vapor growth and declining traditional tobacco sales.
These three longtime dividend-payers provide an average yield of more than 5%.
Altria comprises over 20% of my dividend stock portfolio, and I am optimistic about its potential, even without cannabis reform. I believe Trump may enact federal cannabis reform due to political pragmatism and growing public support, especially among younger Republicans. Cannabis reform aligns with states' rights, appealing to conservatives, moderates, and libertarians, and could ensure continued Republican political dominance.
People still smoke cigarettes. About 30 million Americans do.
Altria (MO 1.37%) and British American Tobacco (BTI 1.84%) both have attractively large yields, at 7.4% and 7.7%, respectively. By comparison, the S&P 500 index is only yielding 1.2% while the average consumer staples stock has a yield of roughly 2.7%.