Source: Unsplash

The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its twelfth stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today I'll review the second of five consumer defensive sector stock candidates vying to be that thirteenth selection in the Vista portfolio.

My subject today is a large-cap tobacco company named Altria Group Inc. Its trading ticker symbol is MO. This is my first report on Altria Group Inc for Vista but I have reviewed and selected it for several other of my DOTW portfolios.

Altria comprises Philip Morris USA, U.S. Smokeless Tobacco, John Middleton, Ste. Michelle Wine Estates, Nu-Mark, and Philip Morris Capital. 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 40% share.

In addition, it provides finance leasing services primarily in transportation, power generation, real estate, and manufacturing equipment industries. 

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.

I use three key data points to gauge dividend equities or funds like Altria Group Inc:

(1) Price

(2) Dividends

(3) Returns

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

MO Price

Altria's price per share closed at $40.49 today. A year ago its price was $50.60. Price is down  $10.11 or almost 20% on the year.

If Altria's stock trades in the range of $30 to $50 this next year, its recent $40.49 price might rise by $4.51 to reach $45.00 by December 1, 2021. 

MO Dividends

Altria's most recently declared quarterly dividend was $0.86 paid October 9th. Dividends are estimated to total $3.44 per share annually and yield 8.50% at yesterday's $40.49 closing price.

MO Gains?

Adding the $3.44 annual anticipated dividend to my 4.51 optimistic estimate of Altria Group Inc's price upside shows a $7.95 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in Altria Group Inc at $40.49 and we would buy 25 shares of MO stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us   $0.40 per share.

Subtract that maybe $0.40 brokerage cost from my estimated  $7.95 gross gain per share results in a net gain of $7.55 X 25 shares = $188.75 for an 18.85% net gain on a $1,012.25 investment.

So it goes that Altria Group Inc shows a possible 18.85% net gain including an 8.50% dividend yield. It could be more, it could be less. 

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.