Altria(MO)

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Is Altria's 8.2%-Yielding Dividend Worth the Risk? 1 Trend Suggests the Stock Could Be in Trouble.
The Motley Fool· 2024-11-02 08:10
Core Viewpoint - Altria Group, despite its high dividend yield of 8.2%, faces significant long-term risks due to declining youth tobacco use and changing demographics, which could jeopardize its growth prospects and dividend sustainability [1][5][9]. Group 1: Dividend Analysis - Altria's dividend yield is significantly higher than the average S&P 500 yield of 1.3%, requiring a much lower investment to generate $1,000 in annual dividend income compared to the broader market [1][2]. - The company has a modest payout ratio of 67% and has increased its dividend 59 times in the past 55 years, suggesting a historical commitment to maintaining its dividend [7]. - However, the long-term viability of the dividend is questioned due to potential risks to the core business model, which could render the dividend a "ticking time bomb" [7][8]. Group 2: Industry Trends - Youth tobacco use has reached a 25-year low, with only 1.4% of students reporting cigarette smoking, indicating a significant decline in demand for tobacco products [5][6]. - The decline in e-cigarette use and overall tobacco consumption among younger demographics poses a broader problem for Altria, which is attempting to pivot towards smoke-free products [6]. - The stock has only risen 7% in the past five years, and future growth prospects appear bleak as younger generations are not adopting smoking habits, further challenging Altria's market position [9]. Group 3: Investment Considerations - While Altria's high dividend may attract investors, the uncertain future and declining market demand suggest that it may not be a prudent investment choice [10]. - Investors are advised to approach Altria stock with caution, as the potential for underwhelming returns exists despite the attractive dividend [9].
Altria: Despite Recent Gains, The Valuation Implies Negative FCF/Share Growth
Seeking Alpha· 2024-11-02 05:15
I prefer to look for GARP (growth at a reasonable price) stocks but also look for opportunities everywhere else. I don't have a specified time horizon. I invest in a stock for as long as my thesis holds true, and I get out when the facts change. In addition, I've developed market-beating algorithms with Python that have helped me find attractive investment opportunities within my own portfolio, and I have been investing since 2016.On top of that, I've worked at TipRanks as an analysis/news writer and even a ...
1 Reason I Haven't Bought Altria Group and Probably Never Will
The Motley Fool· 2024-11-01 08:45
Smoking doesn't align with my personal values.Dividends are a big part of my investment strategy. I prefer to invest in companies that offer attractive and growing dividends. I like to collect passive income, and dividend growers are proven wealth creators. Given all this, Altria Group (MO 7.84%) would seem to be the perfect stock for me. The company currently pays a dividend yielding more than 8%. Meanwhile, it has increased its payment 59 times over the last 55 years, a trend it expects will continue thro ...
Why Altria Stock Was Surging Today
The Motley Fool· 2024-10-31 22:54
The market was clearly impressed how management is coping with the company's challenging situation.On Thursday, good news from one of the market's favorite "sin stocks" drove its share price up by almost 8%. This lucky company was Altria (MO 7.84%); the cigarette maker's latest quarterly earnings report was received most favorably by market players. The stock's pop on the day was in market contrast to the 1.9% slump of the benchmark S&P 500 index.Slight increases and modest beatsThat morning, Altria release ...
Altria(MO) - 2024 Q3 - Earnings Call Transcript
2024-10-31 16:47
Altria Group, Inc. (NYSE:MO) Q3 2024 Earnings Conference Call October 31, 2024 9:00 AM ET Company Participants Mac Livingston - Vice President of Investor Relations Billy Gifford - Chief Executive Officer Sal Mancuso - Executive Vice President and Chief Financial Officer Conference Call Participants Matt Smith - Stifel Bonnie Herzog - Goldman Sachs Faham Baig - UBS Callum Elliott - Bernstein Operator Mac Livingston - Vice President of Investor Relations Billy Gifford - Chief Executive Officer Sal Mancuso - ...
MO Q3 Earnings Top Estimates on Pricing Amid Low Cigarette Volumes
ZACKS· 2024-10-31 16:35
Altria Group Inc. (MO) posted third-quarter 2024 results, wherein the bottom line improved year over year and beat the Zacks Consensus Estimate, whereas revenues dipped due to the smokeable products segment. However, the smokeable products segment saw robust operating income growth, driven by Marlboro's strong performance. In the oral tobacco category, MST brands sustained profitability, and on! continued its upward momentum in the market. Along with the earnings release, Altria has unveiled a new initiati ...
Altria Q3 Review: Smoking Hot
Seeking Alpha· 2024-10-31 14:53
Altria Group, Inc. (NYSE: MO ) has just released its FY 2024 Q3's results as Seeking Alpha has covered here . While pre-market price action can be fickle, it looks like Altria investors are set for a day Dividends (DGI and DRIP) and Growth at reasonable price (GARP) for Long-term. Serious money.Fun trading for short-term. Play money.Ideas and thoughts presented in the articles are not professional recommendations. Analyst's Disclosure: I/we have a beneficial long position in the shares of MO either through ...
Altria (MO) Q3 Earnings and Revenues Surpass Estimates
ZACKS· 2024-10-31 13:11
Altria (MO) came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.36 per share. This compares to earnings of $1.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.47%. A quarter ago, it was expected that this owner of Philip Morris USA, the nation's largest cigarette maker would post earnings of $1.35 per share when it actually produced earnings of $1.31, delivering a surprise of -2. ...
Altria(MO) - 2024 Q3 - Earnings Call Presentation
2024-10-31 12:43
Altria's Third-Quarter and Nine-Months 2024 Earnings Conference Call October 31, 2024 FAMILY OF COMPANI 1 | ALCS | Q3 2024 | 10.31.24 | For Investor Purposes ONLY Safe Harbor Statement Statements, including earnings guidance, in this presentation that are not reported financial results or other historical information are "forward-looking statements" within the meaning of Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates and expectations, ...
Altria(MO) - 2024 Q3 - Quarterly Report
2024-10-31 11:25
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-08940 Altria Group, Inc. (Exact name of registrant as specified in its charter) Richmond,Virginia | --- | --- | |------------- ...