MO - Altria: 3 Things You Need To Know About This 9% Yielding Dividend Aristocrat

2024-07-05 07:00:00 ET

Summary

• The Terrific Ten companies generated 76% of the market's gains in the year's first half, raising concerns about market bubbles.
• Altria stock is up year-to-date, outperforming the S&P.
• Altria's long-term thesis remains solid. Its focus on a smoke-free future transition plan makes it a potentially strong buy with significant return potential.
• Altria remains 22% undervalued, with a free cash flow yield 3X that of the S&P, and it offers 90% return potential through 2026 and 215% through 2028.
• For anyone comfortable with the risk profile who believes management can make the smoke-free transition work, MO is one of the smartest deep-value momentum blue-chip buys you can make today.

Altria ( MO ) is a beloved dividend aristocrat, a dividend king with a 54-year dividend growth streak.

In a year when the market's gains have come from a handful of companies, many investors worry about market bubbles.

The Terrific Ten generated 76% of the market's 14.5% gains in the first half of the year, while the S&P 490 is up 3.5%.

But guess what? It's always and forever a market of stocks, not a stock market.

Altria Is Beating The Nvidia ( NVDA ) powered S&P

In a year when almost nothing can beat the Nvidia-powered S&P, Altria is beating the market....

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