MO shows resilience through strategic partnerships and pricing power amid challenges from illicit products and declining cigarette volumes.
Altria (MO) reachead $52.60 at the closing of the latest trading day, reflecting a -1.63% change compared to its last close.
I went from recommending Altria as a Sell last to now being a Strong Buy, with strong assumptions for its future revenue and earnings. Altria has a margin of safety and its upside has not yet been priced in by the market as its gains follow its EPS linearly. I'm confident that Altria's top-line erosion can be curtailed and that it will swing into positive territory by the middle of next year.
Altria (MO) reachead $52.99 at the closing of the latest trading day, reflecting a -0.49% change compared to its last close.
Making Altria the largest position of your dividend portfolio could help you to increase its potential for generating dividend income and reducing volatility. This is due to Altria's Dividend Yield [FWD] of 7.46% and its low 24M Beta Factor of 0.16. In this article, I will demonstrate how you could build a $100,000 dividend portfolio across 2 ETFs and 10 dividend paying companies, while holding Altria as the largest portfolio position.
Zacks.com users have recently been watching Altria (MO) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
I will demonstrate why I believe that Altria and BB Seguridade Participações S.A. could be attractive additions to your dividend portfolio. Both companies have an attractive Valuation, combine dividend income and dividend growth, and can help you decrease the volatility of your dividend portfolio. While Altria offers a Dividend Yield [FWD] of 7.30%, BB Seguridade Participações S.A.'s stands at 8.64%. Both companies have also shown significant dividend growth in recent years.
Altria (MO -0.13%) is a consumer staples giant with a growing dividend and a huge 7.4% dividend yield. That looks like a big opportunity for income investors, given that the S&P 500 is only yielding 1.2% and the average consumer staples stock just 2.5%.
MO's turnaround from the Juul fiasco has been highly successful indeed, as observed in the growing NJOY sales across devices/ consumables and expanding retail share. PM ZYN's ongoing shortage has also been a boon, as observed in on!'s high double digit volume growth and oral tobacco market share in the US. MO's prospects are also significantly aided by the promising Vision and 2028 Enterprise Goals, funded through $600M in cumulative cost savings from the Optimize & Accelerate initiative.
This article explains why I like MO better than PM, following the so-called rule of 10xEBT (earnings before taxes). MO features a lower EBT multiple (only about 8.1x of its FWD EBT) than PM (about 15x). Thus, under Buffett's 10x Pretax Rule, MO offers a much more compelling pretax earnings yield (over 12% vs. PM's 6.4%).
Altria (MO -1.44%) is one of the stock market's more divisive titles. As a major producer of cigarettes, its continued existence is controversial in a world that has grown more health-conscious and aware of tobacco's hazards.
Altria (MO -0.66%) as a stock, is not all that attractive for investors. Over the past five years, the stock's price is up roughly 10% -- cumulatively.