2024-04-19 07:00:00 ET
Summary
- Altria Group offers a potential upside of over 30% and has an estimated fair price value of $54 per share.
- MO has a large dividend yield nearing 10% and has achieved the golden dividend king status by increasing distributions for over 54 consecutive years.
- Despite the decline in traditional smoking, MO has successfully adapted to the market shift by focusing on the e-cigarette market and maintaining healthy profit margins.
- The dividend yield sits above the 4-year average. This is an opportunity to add more income to your portfolio. Additional dividend increases are very likely due to OCI margins.
Overview
In my initial coverage of Altria Group, Inc. ( MO ), I stated that there was a potential upside of over 30% and an estimated fair price value of $54 per share. When I previously covered MO, I was in the perspective that total return would come from eventual share appreciation and income. The price has recently floated between the $40 - $50 per share range and I believe that entry near this $40 mark is more ideal. As I reassess the company and ideals around the typical MO investor, I want to discuss how MO can also be utilized efficiently by investors only looking to prioritize income received. I plan to accumulate more shares at this level and increase my annual passive income total through MO....
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For further details see:
Altria: Price Appreciation Isn't What's Valued Here