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Better High-Yield Dividend Stock: Altria Or Philip Morris?

Published Thu, 12 Oct 2017 10:35:19 -0400 on Seeking Alpha

When it comes to dividend stocks, tobacco giants Altria Group (MO) and Philip Morris International (PM) are hard to beat. They both offer dividend yields well above the S&P 500 average. And, both are members of the Dividend Achievers list, a group of stocks with 10+ consecutive dividend increases. You can see the entire list of all 265 Dividend Achievers here.
Altria in particular has a very impressive streak of dividend increases. It has increased its dividend 51 times in the past 48 years. That said, Altria has had a fairly difficult year, with its shares down 4% year to date. On the other hand, Philip Morris has performed quite well, up 25% so far in 2017.
MO Year to Date Price Returns (Daily) data by YCharts
Both stocks can be valuable holdings for their high dividend yields. But Altria may be the better tobacco stock at the present time, based on valuation and dividends.
Business Overview Altria and Philip Morris are both tobacco companies, that share the Marlboro cigarette brand. Altria sells Marlboro in the U.S., while Philip Morris has the international distribution rights. Altria dominates tobacco in the U.S., as Marlboro controls nearly half of domestic market share.
Source: 2017 CAGNY Presentation, page 42
Altria’s other products include Skoal, Copenhagen, Black & Mild, and Ste. Michelle. It also has a 10% ownership stake in global beer giant Anheuser Busch Inbev (BUD).
Philip Morris has a more concentrated portfolio. It sells... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ALTRIA GROUP 62.95   11.8 5.32 2.64 4.03
PHILIP MORRIS INTERNATIONAL 103.55   26.8 3.87 4.28 4.01


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