It would appear that I have been on a buying streak lately. Just a short time after making the purchase of AT&T stock, I decided to start a position in a new company. Some people do not look very favorable on this company. Some have even labeled it a sin stock. Despite the negative sentiments on this company, I decided that now would be a good time to start a position in Altria. The company primarily operates in 3 segments: smokeable products, smokeless products and wine.
Altria Stock Dividend Data
Annual Dividend: $2.80
Payout Ratio: 47%
Dividend Growth History: 9 years
Earnings Per Share: $5.32
PE Ratio: 11.14
Recap of Information on Altria Group
The company operates in a declining market but the own more than 50% market share in both smokeable and smokeless tobacco products. So even though the market is declining they are able to continuously increase the price of their cigarettes.
Altria, with their partner Philip Morris, wants to bring heated tobacco products to the USA. This is not the vapes that we are use to seeing. The vapes we see now contain a juice that is heated up into a vapor form. Altria and Philip Morris have a product that still uses tobacco but instead of heating it up enough to burn it, it will only heat it up enough to release a vapor from the tobacco. Consuming the nicotine this way is a better alternative than burning it because a lot of harmful chemicals are consumed through the smoke.
Despite how you may feel about tobacco products if they are able to market and sell these heated tobacco products in the states it would help generate revenue growth in the company.
Altria Group Impact on More Dividends
I added 7 shares of Altria Group at an average price of $65.46. This addition to my portfolio will add $19.60 to my project annual dividend income not including the compounding factor.
Altria Group has been growing their dividend for the better part of the past decade. The are investing in ways to generate revenue growth which will help them continue to grow their dividend. The company currently sports are very nice PE ratio so it seems like a good time to buy. I know the stock has dropped more since I made this purchase so I am thinking of lowering my cost basis on this stock.
Have you recently purchased stock in Altria Group? Do you currently own any shares of Altria Group? If so I would love to hear about it.
As always I look forward to reading all of your comments and questions, until then….. happy investing!
-Jason from MoreDividends.com
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