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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.)

MO Returns

Adding the $3.44 annual Altria Group forward-looking dividend to my $3.32 price upside estimate shows a $6.76 potential gross gain, per share, to be reduced by any costs to trade the shares.  Say we invest a little under  $1000 in MO at $49.18 per share, we'd buy 20 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.50 per share.

Subtract that maybe $0.50 brokerage cost from my estimated $6.76 gross gain per share results in a net gain of $6.26 X 20 shares = $125.20 for a 12.5% net gain on a $983.60 investment.

So it is that Altria Group Inc shows a possible 12.5% net gain including a 6.99% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in MO could generate $69.90 in cash dividends. And a single share bought at yesterday's closing price was under $50.00! So, if MO is your kind of tobacco company investment, Altria Group Inc's share price is $19.00 under the expected annual dividend income from $1,000 invested. This suggests now is a good time to add Altria Group Inc to your stock holdings. 

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