S Current Report: Altria Group

Altria Group Inc, known by the ticker symbol (MO) is a large-cap tobacco company, operating in the consumer defensive business sector. This is my second report on MO for this Viital portfolio it has twice been selected for two of my previous portfolios. I last reported on MO 11/15/21.

Image: Altria Group

Altria comprises Philip Morris USA, U.S. Smokeless Tobacco, John Middleton, Helix Innovations, and Philip Morris Capital, although the company plans to wind down Philip Morris Capital by the end of 2022.

It holds a 10% interest in the world's largest brewer, Anheuser-Busch InBev. Through its tobacco subsidiaries, Altria holds the leading position in cigarettes and smokeless tobacco in the United States and the number-two spot in machine-made cigars.

The company's Marlboro brand is the leading cigarette brand in the U.S. with a 43% share in 2020. Altria holds strategic investments in JUUL Labs (35% economic interest) and Cronos (42%).

It sells its tobacco products primarily to wholesalers, including distributors; and large retail organizations, such as chain stores.

Altria Group, Inc. was founded in 1822 and is headquartered in Richmond, Virginia.

Three key data points gauge any dividend equity or fund such as Altria Group Inc (MO).

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

MO Price

Altria’s price per share was $52.93 as of yesterday's market close. One year ago its price was $50.52. Therefore, MO’s share price rose $2.41 or near 4.8% in the past year.

If Altria Group’s  stock trades in the range of $40.00 to $60.00 this next year, its recent $52.93 share price might rise by $3.07 to reach $56.00 by May 24, 2023. My $3.07 upside estimate is $0.79 under the median of annual price estimates from 16 brokerage analysts tracking MO.

MO Dividends

Altria Group’s most recently declared quarterly dividend of $0.90 is payable July 11th to shareholders on record as of June 14th.   You’ve time to get in on this coming payout.

Altria Group Inc initiated a quarterly $0.06 dividend  as of March 9, 1987. The dividend has increased nearly annually to $0.4775 last year. Its payout equates to $3.60 at an Annual rate, WBA annual payout is calculated to deliver a 6.8% annual yield per yesterday’s $52.93 share price.

MO Returns

Adding the $3.60 MO annual dividend to the estimated one-year price upside of $3.07 shows a $6.67 potential gross gain, per share, to be reduced by any costs to trade MO shares.

At yesterday's $52.93 closing price per share, a little over $1000 would buy 19 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.53 per share.

Subtract that maybe $0.53 brokerage cost from my estimated $6.67 gross gain estimate per share results in a net gain of $6.14 X 19 shares = $116.66 for an 11.66% net gain including a 6.80% forward looking dividend yield.

So it is that Altria Group Inc  shows a possible 11.66% net gain including a 6.8% forward looking dividend yield.

Over the next year at this time our $1000 investment in Altria Group Inc  shares might generate $68.00 in cash dividends. Of course a single share of MO stock bought at yesterday's $52.93 price is about $15.07 less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to pick up Altria Group Inc shares based on their forward looking dividends for the year 2022. A forthcoming annual dividend from $1K invested is estimated to be $15.07 greater than yesterday's single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Altria Group Inc (MO). Only time and money invested in this stock will determine its market value.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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