2024-03-13 13:58:44 ET
Summary
- Altria Group stock has slightly trailed the S&P 500 but remained resilient. MO attracts investors with its cheap valuation and robust dividend yields.
- Altria faces a structural decline in its legacy tobacco portfolio and must improve its portfolio transition to sustain a valuation re-rating.
- Despite challenges, Altria management is confident in its 2024 outlook and sees more robust growth in the second half of the year.
- A less hawkish Fed in 2024 should provide robust valuation support for MO.
- With MO still valued at a forward dividend yield of nearly 9.6%, it's still very cheap and has a substantial margin of safety.
In my previous update on Altria Group ( MO ), I articulated that MO was working hard to establish a bottom. Over the past two months, MO's performance has slightly trailed the S&P 500 ( SP500 ) but remained resilient. As a result, I assessed that buying momentum on MO has strengthened as investors returned to the well-battered stock, taking advantage of its cheap valuation and robust forward dividend yields....
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For further details see:
Altria: High-Yield Income Play Still Too Cheap To Ignore