WHY INVESTORS HATE ALTRIA GROUP (MO) AND ARE DEAD WRONG IN 2019

At-A-Glance

Altria's companies have a strong American heritage stretching back more than 180 years.

Altria's Companies

Altria Group holds diversified positions across tobacco, alcohol and cannabis. Through wholly owned subsidiaries and strategic investments in other companies, they seek to provide category-leading choices to adult consumers, while returning maximum value to shareholders through dividends and growth. 

Altria’s tobacco companies – which have been the undisputed market leaders in the U.S. tobacco industry for decades – include some of the most enduring names in American business: Philip Morris USA, the maker of Marlboro cigarettes, and U.S. Smokeless Tobacco Company, the maker of Copenhagen and Skoal. They also own John Middleton, manufacturer of Black & Mild cigars, and Nat Sherman, a super-premium cigarette and cigar business. And they have 35 percent ownership of JUUL Labs, Inc. , the nation’s leading e-vapor company.

Altria complements its total tobacco platform with our ownership of Ste. Michelle Wine Estates, a collection of distinctive wine estates, and has significant equity investment in Anheuser-Busch InBev, the world's largest brewer. Altria’s agreement to acquire a significant stake in Cronos Group, a leading global cannabinoid company, represents an exciting new global growth opportunity.

Altria is a FORTUNE 200 company, proud to call Richmond, Virginia home. For 20 years, Altria has been guided by their Mission & Values. Altria’s people and companies address tough industry issues, like reducing the health effects of tobacco use and preventing underage tobacco use. And focus on strengthening the communities where they live and work .

Businesses that are great over the long term – like Altria’s – must earn today's success while preparing for tomorrow's opportunities. And they are doing just that.

Why Choose Altria

  • The tobacco industry is changing – for the better. Altria is transforming the industry through innovation, harm reduction, and informed consumer choice. They are advocating with FDA regulation products that could present lower risk.
  • They are expanding choices for adult tobacco consumers through strategic partners and investments.
  • It's one of the best performing stocks of all time with a Market Cap of 93.4B +.
  • Altria has an excellent management team that continues to find ways to higher profits through higher prices, cost reductions, and strategic investments.
  • Altria has raised the dividend 53 times the past 49 years and has a current dividend yield of 6.76%. They are a dividend aristocrat with a recession-resistant dividend.
  • The 2018 Trump administrations Corporate Tax Cuts reduced Altria's corporate tax rate from 35% to 21% which freed up tons of cash to be distributed back to stockholders in the form of dividends and stock buy backs. In 2018, Altria raised the dividend twice 6.1% and 14.3% for a total of 20.4% for the year. That's awesome, but you must be a stockholder.
  • You can benefit in many ways through the years. Altria spun off Phillip Morris in 2008 but as part of a licensing agreement with Philip Morris can market and sell IQOS devices beginning in July 2019 after receiving approval from the FDA. Altria owns 10% of Anheuser-Busch InBev, 35% of JUUL e-cigarette maker, and 45% of CRONOS Group in the Cannabis Industry.

In conclusion, choose Altria Group Inc. (MO) in your portfolio because of the Growth and Dividends, strong management team, years of solid performance, strategic future investments to offset cigarette sales, and its mission and values.

5 Steps Why to Invest in Growth and Income Stocks for Retirement in 2019

          Investing in Growth and Income stocks provides a great way to beat inflation while a paying you dividends each quarter to supplement your retirement along with pensions, investments, or other money streams. Reasons to Invest in Growth and Income stocks:

  1. You’re a Dividend Growth Investor

It’s a great way to maximize total returns over time. It’s a great strategy for long term investor to provide for a comfortable retirement.

2. Dividend Growth Stocks Outperform the Market Over Time

Dividend reinvestment over time is very important to overall returns. So, reinvesting dividends over the years allowing dollar cost averaging of additional shares provides a nice income stream during retirement.

3. Dividend Growth Stocks are Less Volatile Over Time

They are usually considered a Dividend Aristocrat in they tend to outperform the market during periods of a bear market but do well when markets are performing strongly. They are a company who has raised dividends for at least 25 consecutive years.

4. Must be a Disciplined Investor

Dividend growth investors tend to avoid knee jerk reactions like selling during earnings miss or market correction. Dividend growth investors are being paid to wait for the company to execute its growth plans and stick to a “buy and hold” mentality.

5. Dividend Growth Stocks Provide Income Stream for Retirement

During retirement Dividend Growth Stocks provide income along with pensions, social security, or other income streams.

In conclusion, following the above 5 steps will have you on your way to be a disciplined Dividend Growth Investor and provide an additional income stream during retirement. It’s good Money Sense.