#4 - Altria Group (NYSE:MO)
Altria Group (NYSE: MO) - One defensive stock that is not being overlooked is the Altria Group. This tobacco company is an income investors dream because of the strong margins that allow them to reward their shareholders through both dividends and stock buybacks. In fact, the company has an impressive 5.7 percent dividend yield. Altria, which owns Phillip Morris USA, has a footprint in virtually every aspect of the tobacco industry including various cigarette brands, smokeless tobacco, cigars, and e-cigarettes. But what may be getting investors more excited is Altria’s $1.8 billion investment in Cronos Group which would give Altria a 45% ownership stake in the Canadian cannabis producers. The cannabis market represents a gigantic opportunity for a company like Altria that is looking for opportunities to broaden their revenue stream and be on the forefront of introducing new products to market. Cronos posted 186% revenue growth in 2018 and that growth is forecast to continue in 2019. Some investors will point out that Cronos has yet to turn a profit, but the cannabis field is about to get very crowded. Altria’s investment will certainly be a significant boost to Cronos as it seeks to take a leadership position.
About Altria Group
Altria Group, Inc, through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company offers cigarettes primarily under the Marlboro brand; large cigars and pipe tobacco under the Black & Mild brand; moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands; oral nicotine pouches under the on! brand; and e-vapor products under the NJOY ACE brand.
More- Current Price
- $52.72
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 3 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $53.29 (1.1% Upside)
