Altria Group, Inc. (MO)
Prediction: This High-Yield Dividend Stock Will Payout More in 2024
24/7 Wall St. Insights Stocks that consistently raise their dividends offer investors huge total return potential.
Altria: A Massively Undervalued Dividend Champion
My previous bullish thesis about Altria aged well as the stock substantially outperformed the broader market over the last several months. I think that the major strength of this stock is its 7.92% forward dividend yield, which I consider very safe based on the company's robust financial performance. The company is likely to sustain its strong financial performance for longer, despite the secular decline in traditional cigarettes, due to its rapid expansion into new, thriving niches.
Altria: Our Best Bet In The Current Market
Altria Group has outperformed the market with a 28.2% total return this year, despite missing the latest earnings estimates. While the firm's smokable segment has not performed too well, the growth in the oral tobacco category and the firm's new NJOY product category indicates meaningful growth potential. Using a dividend discount model, MO's fair value is estimated well-above the current share price, indicating significant upside potential for investors.
Is Altria's High-Yielding Dividend Still Safe?
Altria's sales fell by 5% last quarter, and things may not get better soon. The stock's payout ratio looks safe, but the company's earnings got a boost from a one-time gain on a sale.
Altria Group, Inc. (MO) Is a Trending Stock: Facts to Know Before Betting on It
Altria (MO) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Altria Group: After Climbing 26.60% YTD, Shares Can Head Higher, Yielding 7.68%
Altria Group has seen a strong year with shares up over 26% in 2024, breaking the $50 barrier after years below. Despite risks and negative stigma, MO's Q2 results show a profitable business with strong margins and growth potential in non-combustible products. MO's high dividend yield of 7.68% and commitment to annual dividend increases make it an attractive investment for income-producing portfolios.
Altria Q2, Cigarette Price Elasticity, And Market Panic
Altria's recent price divergence from the broader market is yet another demonstration of its hedging role. The role is very timely judging by the odds of a recession, its Q2 sales data, and the recent price elasticity data of its products. The combination of high yield and low P/E further enhances the potency of its hedging role.
Altria: 7.7% Yield, But Limited Upside (Rating Downgrade)
Altria missed expectations in Q2 amid continual revenue challenges in the combustible segment. NJOY momentum, however, remained favorable again. I expect MO to raise its dividend by 4.0% in the third quarter, which would give shares a forward dividend yield of 8%. I am now neutral on valuation, and downgrade shares to hold, given that they have reached my fair value target price of $49 per share.
Altria: Why I Have Stopped Reinvesting In This Dividend King (Rating Downgrade)
Altria has delivered relatively strong financial results in Q2, 2024, confirming the notion of a gradually growing business. Yet, considering these data points and the fact that the stock has delivered almost 30% in total returns since the issuance of my initial investment case, I have become less bullish. In this article, I explain the reasons why I have decided to keep my capital in MO, but stopped reinvesting the dividends or increasing the stake here.
America's Best Dividend Stock Thrives In Market Downturn
Altria (NYSE: MO), the big tobacco company, has a stock that has risen 10% in the last month, while Nasdaq's stock has dropped 3%.
Want $500 in Passive Income: Invest This Much in Altria Stock
24/7 Insights Altria is a member of the Dividend Kings.
Is It Too Late to Buy Altria Stock?
Consumers are smoking fewer and fewer cigarettes. Altria is fighting this headwind well enough with alternative products and stock buybacks.
