#2 - Altria Group (NYSE:MO)
Altria Group Inc. (NYSE: MO) has a highly attractive 7.04% dividend yield. The parent company of several companies, such as Phillip Morris International Inc. (NYSE: PM), is leading the transition away from combustible tobacco products.
If the company’s third-quarter earnings are an indication, it’s pursuing the right strategy. The company beat analysts' expectations for revenue and earnings as they saw robust demand for its nicotine pouches and e-cigarettes, which helped offset the hit to its legacy tobacco products (i.e., cigarettes). That makes sense. As a “sin stock,” Altria has defensive characteristics as its products will be in demand regardless of their personal financial situation.
In addition to an attractive dividend, Altria recently announced a $1 billion stock buyback program as an added way to generate shareholder value. Over the past 10 years, Altria has generated a total return of 99.8%, which means a $5,000 investment would be worth $9,990.
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.
Read More - Current Price
- $56.42
- Consensus Rating
- Hold
- Ratings Breakdown
- 2 Buy Ratings, 3 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $51.33 (9.0% Downside)
