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Altria: Comfortably Grab A Near 15% Cash Yield Or A Double-Digit Dividend Yield

Published Sat, 21 Nov 2020 08:59:31 -0500 on Seeking Alpha

Seeking AlphaDividend Ideas | Consumer Altria: Comfortably Grab A Near 15% Cash Yield Or A Double-Digit Dividend YieldNov. 21, 2020 8:59 AM ET|| About: Altria Group, Inc. (MO)by: The Value PortfolioThe Value Portfolio The Energy ForumCyclical value, growing dividends from high quality energy companiesSummaryAltria investors can comfortably grab a near 15% cash yield or a double-digit dividend yield through options.
The company has managed to grow its EPS in what has been a surprisingly strong 2020.
We expect the company to continue shareholder rewards and focus on alternative businesses.
Its poor acquisitions have already been more than priced into its stock.
Altria (NYSE: MO) has had an amazing 2020, but hasn't received any real credit for it. The company's market capitalization remains around $80 billion, and investors' lack of trust in the company has pushed its dividend to more than 8%. Despite those pressures, as we'll see throughout this article, the company remains a unique and valuable investment with numerous opportunities.

Altria - ABC News
Altria's Impressive Business Performance
Altria has continued to see impressive performance from its businesses as 2020 has been a much better year than originally forecast.

Altria Smoke & Oral Tobacco Performance - Altria Investor Presentation
Altria saw a 9.1% gain in its adjusted OCI from $3 billion to $3.3 billion, and improved its margins from 57.2% to 59.2%. That means part of its performance improvements is due to margin improvements, but the company has also managed to maintain its overall revenue and performance. This presence of the company's performance shows its strength.
Altria's strength comes from the minimal decline in the tobacco industry for 2020. 2020 YTD the smokeable products segment has declined only 2%. The company projects adjusted cigarette volumes to be in the range of flat to (1.5%), which is a significant improvement over 2019 when volumes declined... Read more