E Daily Stock Analysis: Altria Group (MO)

single cigarette

Source: Unsplash 

Altria Group Inc has the ticker symbol MO and is a large-cap member of the consumer defensive sector as a tobacco firm. This is my second report on Altria Group for this Vista folio. The previous mention was on December 1, 2020.

Altria comprises Philip Morris USA, U.S. Smokeless Tobacco, John Middleton, Ste. Michelle Wine Estates, Nu-Mark, and Philip Morris Capital, although the company plans to wind down Philip Morris Capital by the end of 2022. It holds a 10.2% 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.

The company 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 dividend equities or funds like Altria Group Inc:

(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 closed at $49.18 yesterday. One year ago its price was $38.81. Thus, price per share grew about 26.7% as it recovered from the Covid doldrums. 

Should MO's stock trade in the range of $35 to $55.00 this next year, its recent $49.18 price might rise by $3.32 to reach $52.50 by May 27, 2022. My estimate is  $0.02 higher of the median of eighteen price estimates from analysts tracking MO. 

MO Dividends

Altria's most recent quarterly dividend of $0.86 is payable July 9th and equates to $3.44 annually which will yield 6.99% based on yesterday's $49.18 closing price. Altria has paid quarterly dividends increasing annually since 1970 (51 years.)

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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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Link Lindquist 3 weeks ago Member's comment

British Tobacco (BTI) trading for $38 and change with a 7.68% dividend seems to offer more upside with P/E of 9 and PEG of 1.99. Also, their partnership with Organigram (OGI) is compelling, and I'd like to see Altria use some of its' enormous cash hoard to invest in cannabis b/c federal legalization is imminent. Both companies are excellent income stocks.

Anne Barry 3 weeks ago Member's comment

Good insight.