Published Sat, 15 Aug 2020 10:45:07 -0400 on Seeking Alpha
Seeking AlphaDividend Ideas | Consumer Altria: Hikes And Increased Income, Against All Odds, Yield 8%Aug. 15, 2020 10:45 AM ET|| About: Altria Group, Inc. (MO), Includes: BTI, IMBBY, JUUL, PMby: Rida MorwaRida Morwa High Dividend OpportunitiesThe #1 Service for Income Investors and Retirees, 9-10% dividend yield.SummaryQ2 2020 results were better than expected for Altria and it even hiked its dividends.
We take a closer look at the numbers and the current economics to confirm our prior positive outlook.
Altria is a strong buy for its income prospects. It's a buy-and-hold for the long run.
We are buyers at the current price, but would not chase beyond $44/share. We explain why.
Co-produced with Trapping Value
Early in July when we recommended Altria Group (MO) and added it to our Portfolio, we explained our positive outlook on its total return prospects. This was built on a historically high dividend yield, a very low valuation of enterprise value / EBITDA (EV to EBITDA multiple), and the longer term potential for "I quit original smoking”(or IQOS) to stabilize revenues for the company. Those positives were tempered by lower visibility through the pandemic and also IQOS launch delays which appeared to make it more of a 2021 story. With Q2-2020 financial results out, we examine in this report how our thesis shaped up and if MO is still a solid buy.
Altria re-instituted guidance for the year after having withdrawn it in Q1-2020. Earlier, it had limited visibility on supply disruption as well as the extent to which hoarding was distorting the final numbers. The last few months though have shed light on trends and Altria felt comfortable providing guidance. It now expects adjusted EPS to come in between $4.21 to $4.38 for this year. This would be a growth of 0% to 4% over 2019 adjusted EPS numbers, which is impressive given the current recession, and in light of the fact that world GDP is due for a remarkable drop, in the range of... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|BRITISH AMERICAN TOBACCO||37.99||0.0||0.00||2.68||6.64|
|PHILIP MORRIS INTERNATIONAL||74.90||14.9||5.03||4.68||6.12|
Older articles featuring British American Tobacco (BTI):The Retiree's Dividend Portfolio - Jane's August Update: Preferred Exchange
2 High-Yield Anti-Bubble Blue-Chips Retirees Will Love
8 High-Yield Blue-Chips I'm Buying For My Retirement Portfolio During This Market Downturn
A 91 Kiplinger 'Most Reliable Dividend Stocks On Earth' September Update
5 Safe And Cheap Dividend Stocks To Invest In (September 2020)
The 91 Kiplinger 'Most Reliable Dividend Stocks On Earth' Boast 15 Savory Dividends For August
Altria: Raising Estimates After Q2; 8% Dividend Yield And 10x P/E
11 Amazing High-Yield Blue-Chip Buys I Just Made For My Retirement Portfolio
The Retiree's Dividend Portfolio - Jane's June Update: Record Dividends During COVID-19
Altria: Grab This 8.4% Yield Dividend Aristocrat Right Now