Altria: An 8% Dividend Yield Is Intact

Summary:

  • Altria’s 8% forward dividend yield is rock-solid, supported by a strong financial position and impressive profitability, making it a top dividend play.
  • The company is successfully transforming with innovative smoke-free products like on! nicotine pouches and NJOY e-vapors, capturing market share and driving growth.
  • Altria’s valuation is attractive, with a fair share price indicating significant upside potential even with conservative discount rate assumptions.
  • Despite potential long-term health-conscious trends, Altria’s strong brand-building expertise and financial resources ensure continued success in evolving market niches.

Altria office sign in Virginia capital city tobacco business closeup by road street, parent company of Philip Morris

krblokhin

Introduction

I had a ‘Strong buy’ recommendation for Altria (NYSE:MO) published in April. This one aged well as the stock returned 22% to investors over the last six months compared to +10% from the S&P 500.

Altria’s forward


Analyst’s Disclosure: I/we have a beneficial long position in the shares of MO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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