MO - Altria's 8.6% Forward Dividend Yield Still Makes It Attractive
2024-05-16 12:55:53 ET
Summary
- Altria's ~14% stock price rise YTD is supported by multiple factors like a high dividend yield, increased share buybacks and upgraded earnings outlook.
- These override any impact the otherwise weak Q1 2024 results might have had, especially as the adjusted earnings were impacted by shrinking revenues.
- Even though MO's P/E has inched up this year, price gains are still possible, or at the very least, a price decline is unlikely and its dividend yield is robust.
Since I last wrote about tobacco company Altria (MO) in February, its price is up by 11%. No surprises here. Just going by the company’s market multiples, it was evident even then that a price uptick was possible. This was further confirmed by its high, sustained dividends as well as a small increase in its adjusted diluted earnings per share [EPS] for the full year 2023....
Altria's 8.6% Forward Dividend Yield Still Makes It Attractive