Altria: The Market Is Right, It's Cheap For A Reason (NYSE:MO)

Altria delivered solid Q2 EPS growth of 4% but market remains concerned about uncertain recovery amid tough comps.
Pricing actions helped offset volume declines but oral tobacco momentum still slow. Transformation execution risks remain.
Valuation very attractive but stock chart shows worrying downtrend bias since May peak.
Hold rating apt for now amid uncertain outlook. Need to see buying support return before turning constructive.
Income investors attracted to high 8.9% dividend yield but price action not yet bullish enough to buy.

seekingalpha.com

Relevant topic timeline:

8/30/2023

Bull Market or Not, There Is 1 Glaring Reason to Own Altria Stock

Altria, a market leader in the tobacco industry, is facing declining revenue due to factors such as inflation and lower cigarette volumes, but its management is implementing a growth plan through acquisitions and increased distribution, while also rewarding shareholders with dividends and stock buybacks.

10/4/2023

Altria: High-Yield Dividend King Faces Risks But Remains Attractive for Income Investors

The article mentions Altria Group (NYSE:MO) as the stock in focus. The author's recommendation is to buy or hold the stock. The key information and data provided are as follows: - Altria Group's shares have declined -8.66% year-to-date and are approaching a long-term resistance level of $40 per share. - Altria is considered the King of the Dividend Kings with a yield exceeding 9%. - Despite challenges such as regulatory issues and health-conscious consumers, the author believes it is a good time to start a position or add to an existing position in Altria. - The financial statements of Altria show impressive numbers, with high revenue, gross profit margin, net income, and free cash flow. - Altria has a history of increasing its dividend annually and recently increased its dividend by 4.3%. - Based on projections, the dividend could increase by 34.27% through the end of the decade. - Altria is trading at an attractive valuation compared to other top yielding Dividend Kings. - The stock is facing a long-term resistance level at $40, but if it holds, it could rebound to the mid $40s. - The author identifies three external catalysts that could help Altria in the future: the disappearance of ESG investment products, potential benefits from Altria's investment in cannabis, and a favorable rate environment for dividend stocks. - The author acknowledges the risks associated with investing in Altria, including regulatory threats and changing consumer preferences towards healthier lifestyles. Overall, the author's core thesis is that Altria presents a strong opportunity for income investors due to its high yield, profitability, dividend growth, and potential catalysts. The author believes that as the interest rate environment becomes more favorable for dividend stocks, capital will flow back into Altria and make it an attractive investment.

10/4/2023

Cramer's Guide: Invest Smarter By Avoiding Risky Startups and Controversial Sectors

Upstart's stock performance is considered too risky, Altria is not recommended due to the negative impact of tobacco, SoFi is seen as a steady investment, and Nextera remains uncertain according to Jim Cramer's analysis.

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Posted 9/7/2023, 8:00:00 PM

Altria: The Market Is Right, It's Cheap For A Reason (NYSE:MO)

Altria delivered solid Q2 EPS growth of 4% but market remains concerned about uncertain recovery amid tough comps.
Pricing actions helped offset volume declines but oral tobacco momentum still slow. Transformation execution risks remain.
Valuation very attractive but stock chart shows worrying downtrend bias since May peak.
Hold rating apt for now amid uncertain outlook. Need to see buying support return before turning constructive.
Income investors attracted to high 8.9% dividend yield but price action not yet bullish enough to buy.

seekingalpha.com

Relevant topic timeline:

8/30/2023

Bull Market or Not, There Is 1 Glaring Reason to Own Altria Stock

10/4/2023

Altria: High-Yield Dividend King Faces Risks But Remains Attractive for Income Investors

10/4/2023

Cramer's Guide: Invest Smarter By Avoiding Risky Startups and Controversial Sectors