Thursday, September 5, 2013

Recent Buy - Altria (MO)

Earlier this week I added to my position in the tobacco giant Altria (MO).  I purchased 35 shares at $34.08 which brings my total position to 95 shares. Last year Altria had raised its dividend by 7.3% so I was pretty happy with the 9.1% dividend raise that was announced by Altria recently so I decided to make a purchase before the ex-div date next week. Altria was founded in 1919 and has increased it's dividend for 45 years straight making it a dividend champion. Altria also announced that it will expand its share buyback plan by $700 million to $1 billion in a year from the current annual buyback plan of $300 million.

Altria Group, Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes, smokeless products, and wine in the United States and internationally. It offers cigarettes primarily under the Marlboro brand; smokeless tobacco products under the Copenhagen, Skoal, Red Seal, Husky, and Marlboro Snus brand names; cigars principally under the Black & Mild brand; and pipe tobacco.

Altria Stock Chart

Altria Basic Statistics

  • Ticker Symbol: MO
  • PE Ratio: 15.65
  • Yield: 5.7%
  • Dividend Growth 10yr:  11.4%
  • Payout Ratio: 80%
  • Market cap: $68 B
  • Website: http://www.altria.com

Normally an 80% payout ratio is a bit above my screening criteria however during a recent conference call, the company stated that one of their goals is to payout about 80% of its adjusted EPS via dividends.
Altria Dividend History
Posted by at

7 comments:

  1. UnknownSeptember 6, 2013 at 12:21 AM

    Be careful with this. They are quick to cut the dividend. Just go back through their dividend history and take a look. Good luck!

    ReplyDelete
    Replies
    1. Captain DividendSeptember 6, 2013 at 2:22 PM

      I can only assume your referring to what happened in 2008 when it appeared that there was a massive dividend cut along with a massive stock price drop. This was due to Phillip Morris International splitting off from it's parent company (MO). In the process shareholders received a share of each company and the MO stock price simply adjusted for this. As a result of the stock price change the dividend simply scaled along with the stock price. There was no dividend cut. Altria is a dividend champion who has raised dividends for 45 years straight.

      Delete
  2. Financial SmartsSeptember 6, 2013 at 9:56 AM

    I actually just bought 100 shares of MO as well! I got in at $34.11. I love this stock, I've owned it for years and it is very steady in both price and dividend growth.

    ReplyDelete
    Replies
    1. Captain DividendSeptember 6, 2013 at 2:24 PM

      Awesome, I'm right there with you. MO certainly has a commitment to it's shareholders.

      Delete
  3. Dividend Growth Stock InvestingSeptember 11, 2013 at 7:09 AM

    I'm a proud MO owner as well. I purchased earlier this year and maybe should consider adding to my position. I was certainly pleased with the 9.1% dividend raise considering the company already pays such a nice yield. As long as they can continue doing what they've been doing in the past, I'll be one happy owner.

    ReplyDelete
  4. UnknownNovember 7, 2013 at 8:52 PM

    Greetings from Australia.
    After much research, I just purchased 30 shares overnight. I intend to keep buying MO and Carl Icahn's IEP every 6 months for the next 20 years until I retire. Dividends to be fully reinvested. I figured if it's good enough for "Helicopter Ben" Bernanke to solely hold MO in his 401K portfolio, then it's good enough for me. I also hold some Aussie LICs and physical gold and silver. Cheers!

    ReplyDelete
  5. UnknownJune 26, 2016 at 11:22 AM

    If you have scrap gold which you don't need or get new one then you have a choice to sell this and get new one which is for you.
    Sell Scrap Gold

    ReplyDelete

Subscribe to: Post Comments (Atom)