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Altria Group, Inc. (MO)

NYSE - NYSE Delayed price. Currency in USD
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50.81+0.50 (+0.99%)
At close: 04:03PM EST
50.81 0.00 (0.00%)
After hours: 07:59PM EST
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  • D
    David
    Actually the BUD stake is currently worth close to $13.3B (197M shares x $67.80) and is up about 20% since the lock-up period expired. This holding actually dates back all the way to the 1960s when MO originally bought into Miller.

    BUD’s all time high is around 2x where it is today. There isn’t any huge need for liquidity at the moment, and that stake throws off about $230M annually in dividends on about a 21% payout ratio.

    Historically before the last merger the BUD dividend was about 5x-6x the current level. It was cut to address debt post-merger reduction which appears to have been cut 40+% over the last few years.

    IMO Management at MO sees they have an undervalued asset that has decent opportunity to inflate and start increasing its dividend again. And until the cash is needed for something else, e.g. US federal legalization of marijuana, they are letting the BUD stake stay where it is.

    So far they seem to have made $2.5B-$3B since October doing this. That’s not too bad.
  • s
    shockey
    I don’t know how I ever traded without using (http://trademarketview.tech)! I look forward to their daily emails each morning that list pre-market movers based on thoroughly researched stock market and world news. I highly recommend anyone who invests in the stock market!
  • A
    Antonio
    I'll keep buying Altria and hold till I Retire in 20 years from now
  • C
    CM
    You may not know this, but Altria’s compounded annual dividend growth rate is over 8%, at least over the past 13 years. Last year’s 4.7% hike was pretty modest.

    It’s pretty significant when you plug that into your portfolio for planning future growth and income.
  • D
    David
    Zzzzzzzzz

    SSDD on the MO board. Josh whining impatiently and making sophomoric comments when intraday movement isn’t moving upwards. Anonymous (the bearish one) picks his spots to brag about being a genius due to short-term changes toward the downside.

    Meanwhile nothing has materially changed. Earnings are a few weeks away and the raised guidance hasn’t been amended. Fed is talking hawkishly and everything we hear points toward a correction in 2022 and a recession in 12-18 months. Rotation to value continues.

    People can stress about it every couple of minutes if that is what makes them happy. Barring significant news that changes the MO landscape the big picture indicates the shares will trade in a range around the current levels for 2022 as the company generates single-digit earnings growth and raises the dividend sometime this summer as usual.
  • V
    Victor
    Looking at all the people that sold at $49 because it always drops after the Ed date 🙄🙄🙄. Congrats you just ruined your guaranteed annual cashflow. You’ll be waiting a while to get back in.
  • D
    David
    The last MO earnings report was a +2.5% improvement over 3Q20 and a +4.5% versus the first 9 months of 2020. They also raised guidance for the year to the upper end of the range. That’s far from being “garbage”.

    The impairment charges on investment assets have nothing to do with operations. They are bookkeeping entries intended to help shareholders and investors better understand how the value of a company’s investment assets is changing. They also aren’t always reductions. When the value of an asset goes up that also gets reported as a revaluation.

    The best way to look at the earnings is to look at what their earnings from operations are. That’s what generates the FCF that cover the dividend.
  • a
    andrew
    If only I was as smart as these genius pattern traders and market timers. I’m not. I just buy and hold and drip.
  • N
    NP
    Lol people are paying 30 multiple for Coca Cola and think it’s a bargain. This is what esg has done to the markets. Altria is at 11 multiple. Historic avg of 14.1 multiple.
  • T
    ThaYoda
    Very happy with MO’s decision to hold onto BUD. Glad that MO management saw eye to eye with me on that move.
  • N
    NP
    $58 minimum for this stock. Analysts are always late to the party.
  • A
    Anonymous
    My MO dividend is in my Fidelity Account. Thank You Billy
  • R
    Ray
    DB's comment several months ago.

    $MO conversation
    Won’t see 50 over the next five years.

    Took less than 90 days to be proved wrong.

    Again DB proves to be the BEST contra-indicator on the board!!!!!
  • M
    Michael
    So. "What is the verdict?" We know the market can't keep going up without a correction no matter what guys like Jimmy Dimon were quoted today. He was bullish for 2022. Undoubtedly, a recession is expected for 2023. Should we buy MO at this price and take the 7%? It seems MO will not go down to the low $40s.
  • J
    Jerry
    Here we go again! Start to get some upward momentum and here comes BOA with a negative article based on old news and the stock is trending downward pre market. The only thing keeping this stock down is the analysts negativity! The financials remain strong, lots of products prepared for the future! Dividends rock solid so why do the big boys keep rehashing old news and stifle the momentum? I am long term hold and enjoying those dividends! Time is on my side!
  • D
    Demetrios
    After this nice run MO is still yielding over 7% on that sacrosanct dividend. What are you folks waiting for, jump in!!!!!!
  • R
    RalphB
    So, has anyone else received the post card about a class action suit with MO? Be sure to read how much the lawyers will get, and then read, carefully, what they intend to be the shareholders portion of the settlement. The word "sleaze" popped into my head as I read it.
  • G
    George C
    I planned on buying and selling MO on the dips. Forget that, I'm holding.
  • G
    George C
    Planned on selling at $50 and waiting for a dip to buy back in, but $50 is not only holding, but still moving up. Think I will hold and watch a bit longer.
  • D
    Dude Love
    If MO is going to keep giving such strong dividend increases each year, the share price "LOW" will inch higher.

    If they move it to just $ 3.72 in August, that's a 6.76% Yield at a 55/share stock price.