Just thinking about all the people who sold to invest into other ‘stable’ companies. Wondering how much they have lost now. This is why you invest, and let the market do what it does. MO is a stock you own for generations
r
Not sure how a couple Mass towns( a few of them) are outlawing sales of tobacco to people born after 2000. Seems to me that Tobacco is a LEGAL product by the FDA and not sure how states laws can randomly outlaw sales of cigs to that population that is federally legal. I smell black market. .This will defiantly be something that is contested and already Im hearing convenient store owners are suing.
V
Blowout Earnings on Jan 27th 2022 // This will GAP-up over $55 ...heading to the Glory Days of $75/share
D
Actually the BUD stake is currently worth close to $13.3B (197M shares x $67.80) and is up about 20% since the lock-up period expired. This holding actually dates back all the way to the 1960s when MO originally bought into Miller.
BUD’s all time high is around 2x where it is today. There isn’t any huge need for liquidity at the moment, and that stake throws off about $230M annually in dividends on about a 21% payout ratio.
Historically before the last merger the BUD dividend was about 5x-6x the current level. It was cut to address debt post-merger reduction which appears to have been cut 40+% over the last few years.
IMO Management at MO sees they have an undervalued asset that has decent opportunity to inflate and start increasing its dividend again. And until the cash is needed for something else, e.g. US federal legalization of marijuana, they are letting the BUD stake stay where it is.
So far they seem to have made $2.5B-$3B since October doing this. That’s not too bad.
N
Heading back to the 60s in the near term.
C
Should hear something about JUUL by Friday according to FTC website.
A
I'll keep buying Altria and hold till I Retire in 20 years from now
D
The last MO earnings report was a +2.5% improvement over 3Q20 and a +4.5% versus the first 9 months of 2020. They also raised guidance for the year to the upper end of the range. That’s far from being “garbage”.
The impairment charges on investment assets have nothing to do with operations. They are bookkeeping entries intended to help shareholders and investors better understand how the value of a company’s investment assets is changing. They also aren’t always reductions. When the value of an asset goes up that also gets reported as a revaluation.
The best way to look at the earnings is to look at what their earnings from operations are. That’s what generates the FCF that cover the dividend.
D
Zzzzzzzzz
SSDD on the MO board. Josh whining impatiently and making sophomoric comments when intraday movement isn’t moving upwards. Anonymous (the bearish one) picks his spots to brag about being a genius due to short-term changes toward the downside.
Meanwhile nothing has materially changed. Earnings are a few weeks away and the raised guidance hasn’t been amended. Fed is talking hawkishly and everything we hear points toward a correction in 2022 and a recession in 12-18 months. Rotation to value continues.
People can stress about it every couple of minutes if that is what makes them happy. Barring significant news that changes the MO landscape the big picture indicates the shares will trade in a range around the current levels for 2022 as the company generates single-digit earnings growth and raises the dividend sometime this summer as usual.
C
An excerpt from the Insider Monkey article of best blue chip stocks to buy (Altria among them):
“Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”
C
You may not know this, but Altria’s compounded annual dividend growth rate is over 8%, at least over the past 13 years. Last year’s 4.7% hike was pretty modest.
It’s pretty significant when you plug that into your portfolio for planning future growth and income.
N
Lol people are paying 30 multiple for Coca Cola and think it’s a bargain. This is what esg has done to the markets. Altria is at 11 multiple. Historic avg of 14.1 multiple.
B
Anyone remember that really poor guy who was always trying to short MO? Can’t remember his name…maybe Dingleberry? I know it started with a D
V
Looking at all the people that sold at $49 because it always drops after the Ed date 🙄🙄🙄. Congrats you just ruined your guaranteed annual cashflow. You’ll be waiting a while to get back in.
M
We have juveniles posting clips on this site we see dropping the mike. I am glad I turned conservative buying Mo, we have read 2022 wil be bumpyfor the market. I added 500 more COP to go along with MO.
C
Generally speaking, if you have time on your side, holding low PE stocks yielding 3%+ are enough to retire quite comfortably.
That’s what my math is leading me to conclude.
At this point, I could probably stop contributing to my 401K entirely and just wait 15 years.
j
Stable as rock!
C
FTC delayed another month on JUUL. What a joke this agency is. First sue MO, next sue NVDA, next sue FB, now watch they are going to sue MSFT next. What a joke.
f
Glad we are in the $afe heaven
i
Watching MO today makes me feel confident I did the right thing getting rid of it. It will never offer more than 7%/8% returns/year provided you buy on a down draft. Nothing wrong with 7/8% but it's so easy to get twice that in todays market.
As for the rotation into value, MO isn't a stock to move into. Happy with my recent SSO & FCX purchases.
.This will defiantly be something that is contested and already Im hearing convenient store owners are suing.
BUD’s all time high is around 2x where it is today. There isn’t any huge need for liquidity at the moment, and that stake throws off about $230M annually in dividends on about a 21% payout ratio.
Historically before the last merger the BUD dividend was about 5x-6x the current level. It was cut to address debt post-merger reduction which appears to have been cut 40+% over the last few years.
IMO Management at MO sees they have an undervalued asset that has decent opportunity to inflate and start increasing its dividend again. And until the cash is needed for something else, e.g. US federal legalization of marijuana, they are letting the BUD stake stay where it is.
So far they seem to have made $2.5B-$3B since October doing this. That’s not too bad.
The impairment charges on investment assets have nothing to do with operations. They are bookkeeping entries intended to help shareholders and investors better understand how the value of a company’s investment assets is changing. They also aren’t always reductions. When the value of an asset goes up that also gets reported as a revaluation.
The best way to look at the earnings is to look at what their earnings from operations are. That’s what generates the FCF that cover the dividend.
SSDD on the MO board. Josh whining impatiently and making sophomoric comments when intraday movement isn’t moving upwards. Anonymous (the bearish one) picks his spots to brag about being a genius due to short-term changes toward the downside.
Meanwhile nothing has materially changed. Earnings are a few weeks away and the raised guidance hasn’t been amended. Fed is talking hawkishly and everything we hear points toward a correction in 2022 and a recession in 12-18 months. Rotation to value continues.
People can stress about it every couple of minutes if that is what makes them happy. Barring significant news that changes the MO landscape the big picture indicates the shares will trade in a range around the current levels for 2022 as the company generates single-digit earnings growth and raises the dividend sometime this summer as usual.
“Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”
It’s pretty significant when you plug that into your portfolio for planning future growth and income.
That’s what my math is leading me to conclude.
At this point, I could probably stop contributing to my 401K entirely and just wait 15 years.
As for the rotation into value, MO isn't a stock to move into. Happy with my recent SSO & FCX purchases.