Core Insights - Extremely high yields can be dangerous, but companies yielding 6% to 8% are considered reliable and increase dividends annually [1][3] - The market determines a stock's dividend yield based on the dividend amount versus share price, not the company [1][2] - Stocks yielding 10% or more often have underlying business issues, leading to potential dividend cuts [2] Group 1: Company Profiles - **Altria Group (MO)**: Known for selling Marlboro cigarettes, Altria has raised its dividend for over 50 consecutive years despite declining cigarette sales. The company offsets volume loss by increasing prices, resulting in a current yield of almost 8% with a payout ratio of 80% of earnings [4][5][6] - **VICI Properties (VICI)**: This REIT owns 93 properties, including major casinos, and has collected 100% of its rent since 2017. It currently yields 6% with a payout ratio of 76% of guided 2024 funds from operations, allowing for continued dividend increases [7][8][9] - **Verizon Communications (VZ)**: A leading player in the U.S. telecommunications market, Verizon has a yield of 7% and has increased its dividend for 20 consecutive years. The payout ratio is 59% of 2024 earnings, indicating a safe dividend despite low growth expectations of 2.5% annually [11][12][13]

Shares of Altria (MO) have been struggling lately and have lost 5.9% over the past four weeks. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road.While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earning ...

As we head into 2025, investors are reflecting on what was a red-hot 2024 for the stock market. Despite ending on a softer-than-expected note as the Fed tempered rate cut expectations, it was still a solid year all around, and the mood remains optimistic.  However, with last year's 20% rally fresh in mind, many are questioning whether the market can sustain such momentum for another 12 months. While individual opportunities for this kind of appreciation remain, another strategy to consider is to focus on di ...

Dividend Strategy - Altria Group prioritizes consistently growing dividends, targeting a mid-single-digit percentage annual increase [1] - The company started paying a quarterly dividend of $1.02 per share in October, up from $0.98, resulting in an annual dividend of $4.08 per share [3] - To generate $500 in annual dividends, an investor would need to own approximately 123 shares of Altria stock, costing over $6,400 based on the stock's closing price on Dec 31, 2024 [3] Dividend Yield and Sustainability - Altria offers a high dividend yield of 7.8%, significantly higher than the S&P 500's yield of 1.3% [4] - The company's free cash flow of $5.3 billion year-to-date covers the $5.1 billion in dividends paid, indicating sustainability [5] Business Performance - Smokeable-products volume fell 10% in the first nine months of 2024 to 53.3 million units [5] - Marlboro's market share declined to 41.7% at the end of Q3 2024, down from 42.3% a year ago [5] - While GAAP diluted earnings per share grew 9.8% in Q3, revenue growth remained weak at 1.3% [6] Industry Challenges - Altria operates in the challenging tobacco industry, with declining volumes and market share in its core smokeable-products business [4][5]

Company Overview - Altria Group (NYSE: MO) is highlighted as a top-tier consumer staple stock with a highly profitable smoking business that has historically provided substantial shareholder distributions [1] Industry Trends - The smoking industry has faced challenges in recent years due to a progressing movement, though specific details on the nature of this movement are not provided [1] Investment Strategy - Dividend investing is emphasized as a key strategy for achieving financial freedom, with Altria Group being a core holding in the author's portfolio [1] - The author's focus spans sectors including tech, real estate, software, finance, and consumer staples, with consumer staples being a significant part of their investment strategy [1] Author's Background - The author has deep experience in M&A and business valuation, with a focus on financial modeling, due diligence, and deal negotiation [1] - The author's motivation for writing is to share insights and experiences in dividend investing, aiming to make the process more approachable for others [1]

Altria (MO -0.42%) owns the Marlboro brand, which has a roughly 41% market share in North America. That's huge and highlights the company's dominance in this geographic region. But the downside here is that Altria is only operating in this single region. If history is any guide, Altria's cigarette business will continue to worsen over the next three years.Altria may have made a big mistakeA few years back, Altria spun off Philip Morris International as a separate company. Altria retained its North American ...

Core Insights - Altria Group, Inc. (MO) is currently undervalued with a forward 12-month P/E ratio of 9.85, which is a 16.9% discount compared to the Zacks Tobacco industry's average of 11.85 [1] - The stock has shown strong performance over the past year, rising by 30.8%, outperforming the industry average of 28% and the S&P 500's increase of 27.3% [3] - Altria is focusing on a smoke-free future, with significant growth in its NJOY e-vapor brand and oral nicotine pouch brand, on!, which saw a 46% increase in shipment volume [10][12] Valuation and Market Position - Altria's stock closed at $52.60, which is 9.4% below its 52-week peak of $58.04 [3] - The stock is trading above its 100-day and 200-day moving averages, indicating a bullish trend [13] - Despite the lower valuation, there are market concerns regarding Altria's growth prospects, which may reflect skepticism about its ability to meet market expectations [4] Growth Strategies and Challenges - Altria is implementing the "Optimize and Accelerate" initiative, targeting at least $600 million in cost savings over the next five years [10] - The company faces challenges from the rise of illicit flavored disposable e-vapor products, which have increased by 45% in users over the past year, impacting the growth of NJOY [15] - Domestic cigarette volumes saw an adjusted decline of 11.5% in the fiscal third quarter, exceeding the industry's average decline of 9% [15] Strategic Partnerships and Future Outlook - Altria is diversifying its portfolio through strategic partnerships, including a joint venture with Japan Tobacco to develop the Ploom heated tobacco device [16] - Analysts are optimistic about Altria's earnings prospects, with the Zacks Consensus Estimate for fiscal 2024 EPS rising to $4.12, indicating a year-over-year growth of 3.4% [17] - The consensus for fiscal 2025 EPS has also increased from $5.30 to $5.33, suggesting a jump of 4.1% from the previous year [17]

They say that investing is a journey. Just over a year ago, I recommended readers to sell Altria (NYSE: MO ), but now I have changed my opinion entirely. This shift was based on the company's unexpected resilience, competitive positioning, and whatAnalyst’s Disclosure: I/we have a beneficial long position in the shares of MO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from See ...

Altria (MO) ended the recent trading session at $52.99, demonstrating a -0.49% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.09%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.1%.The owner of Philip Morris USA, the nation's largest cigarette maker's stock has dropped by 4.88% in the past month, falling short of the Consumer Staples sector's loss of 1.58% and the S&P 500's loss of 0.29%.The upcoming earnings release of ...

Portfolio allocation is a crucial factor that determines performance over the long term. This article will show you how to build a $100,000 dividend portfolio using 2 ETFs and 10 dividend paying companies, from which Altria (I specialize in constructing investment portfolios aimed at generating additional income through dividends. My focus lies on identifying companies with significant competitive advantages and strong financials that can provide you with an attractive Dividend Yield and Dividend Growth, th ...