Altria Stock ( NYSE:MO )
The stock of Altria Group, Inc. ( NYSE:MO ) saw a substantial decline last week, but it was well-supported, allowing the stock to finish the week strongly.
Nevertheless, Altria stock has struggled to regain its upward trend since peaking out in early December.
Bulls would claim that strong pessimism is represented due to the NTM dividend yield of 8.4%, which is significantly higher than its 10-year average of 5.8%.
Challenges Are Looming for Altria
A crucial concern about a structural slowdown in its tobacco goods may deter long-term investors from taking advantage of the yield’s apparent allure.
Additionally, Cowen analysts noted in an early January research that Philip Morris ( NYSE:PM ), with a 59% market share, is the market leader in the world of smokeless tobacco. Investors should be aware that Atria’s joint venture with Japan Tobacco ( OTCPK:JAPAF ) can be a genuine rival against Philip MOrris, given that the company is anticipated to introduce its IQOS products in the US in 2024. Because of this, market participants may need to account for a suitable degree of execution risk, which means a higher-than-average dividend yield should be anticipated.
Moreover, the macroeconomic picture has worsened since November. Consumer spending has been constrained due to the continuing high inflation rates and a more bleak employment picture, although inflation rates have continued to drop.
Plus, Fed officials are probably still worried about the labor market’s strength and how it may affect the ability to maintain higher inflation rates. As a ...
Click here to read the full article on PressReach.com .Subscribe to the PressReach RSS feeds:
- Featured News RSS feed
- Investing News RSS feed
- Daily Press Releases RSS feed
- Trading Tips RSS feed
- Investing Videos RSS feed
Follow PressReach on Twitter
Follow PressReach on TikTok
Follow PressReach on Instagram
Subscribe to us on Youtube