Published Sat, 30 May 2020 07:00:00 -0400 on Seeking Alpha
Over the past 33 years, Altria has compounded shareholder wealth at 17% CAGR.
Altria's liquidity is now $5.5 billion – almost enough to cover the dividend all on its own.
Altria’s 9x earnings and 8.6% yield most assuredly compensates investors for its risk profile.
As you may already know, I'm predominantly known for my REIT writing capabilities, but more recently I have begun to explore many other stocks within the "Dividend King" coverage spectrum.
As one of the co-founders of Dividend Kings (on the marketplace) I am continuously looking for non-REITs to complement my own retirement portfolio, while also providing meaningful value to readers.
As my iREIT on Alpha marketplace service continues to grow, I have made the decision to provide the most in-depth REIT articles for paying members. They all appreciate the exclusivity of my research, and of course, that gives me more flexibility with publishing free non-REIT articles like this one.
Today I'm sharing with readers a recent SWAN pick that I recently purchased (shares), and like "any" SWAN pick, it has risks. However, thanks to my co-producer, Dividend Sensei, the investment thesis has been carefully researched in order to provide optimal analysis, in which I'm confident that my principal is being protected at ALL costs.
Altria Group (MO) – which manufactures and sells cigarettes, smokeless products, and wine – is a legendary and beloved high-yielding dividend king. That's for two reasons.
First, it's raised its dividend for 50 consecutive years – since 1970. That includes through six recessions, highlighting the resiliency of Altria's cash flows and dividend-friendly corporate culture.
Altria Total Return Since 1986
(Source: Portfolio Visualizer)
The other reason Altria has been so popular is that, even with its three-year bear market – resulting in a 40% peak decline that’s the fourth worst fall in its history – this... Read more