Dividend Increase – MO

ID-100130817-300x200 Dividend Increase – MO

Altria Group Inc (MO) just declared $0.66 quarterly dividend. This is an increase of 8.2% from $0.61.

I own 29 shares, so this will increase my annual dividend income by $5.80 to $4,097.70

I updated both my Passive Income page as well as my Portfolio page to reflect the changes.

My Thoughts:

I am very very happy with my holding of MO and do not plan to add more shares anytime soon unless there is a big drop in price. I have been doing very well with this holding as I am up 83.86%. 

I am very very happy with this dividend increase as well! When can you say that you received an 8.2% pay increase from work? This is why I love dividend growth investing. Last year, MO increased its divided by 8.0% and the year before it was 8.7%. I am loving the trend here.

I find the stock to be overvalued and I would recommend a Hold.

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Comments

  1. Hi Felix, Gotta love an 8.2% increase. That $5.80 + every year will add up and pay year after year. You’re correct to appreciate even small increases as they add up and grow. The average person doesn’t understand the wealth and income stream that these small incremental increases produce. Way to go. I wish I would have started this earlier.

    If you haven’t already read “Get Rich With Dividends” by Marc Lichtenfeld, I recommend that book. It explains well the power of divvy increases.

    Have you explored Computershare or Wells Fargo’s Shareowner Online as a way to regularly invest and take advantage of the power of drips (I only invest in companies on their platforms with very low or no fees)?

    Thanks for blogging. I’m traveling to Munich in Oct. Ever been there?

    • Andres, Thanks for the great comment.

      Compounding is one of the great wonders on earth. It’s amazing how so many people don’t know of it. I was one of the people that did not know before. Good thing I like to read.

      No, I have not read that book. Thanks for recommending it.

      I use Scottrade FRIP and it allows me to drip without paying any fees. I get to pool all my dividend income in one place and buy shares of any company I want. Right now I buy GILD with the dividends.

      No, I have not been to Munich. I have only been to Berlin in Germany. I do want to go back to Germany. It is a beautiful country. You are going to love it I am sure.

      • Hi Felix, thanks for your reply. I frip with Scottrade too (it’s awesome) but the local Scottrade office told me that the frip will be replaced by the traditional drip when the merger with TD Ameritrade is finalized. I’m currently fripping OHI.

        • I been hearing the same thing. If it does happen, I will start pooling my dividends until I have $1200 and make buys that way.

  2. Felix,
    Nice increase! I would need to really go the extra line to achieve such a raise in my job. That’s why I love dividend growth investing – you get a big raise without raising a finger.

    I don’t have MO in my portfolio yet but I think it could be one of the foundation stocks in any DGI portfolio. I am not planning to add it yet, though. I agree that it looks overvalued at the moment but I will consider it if the price decreases in the future.
    – BrokeInvestor

    • HI BrokeInvestor,
      Love the name, lol. No one gets an 8% increase from their job every year. However, MO has been increasing their dividend at 8 % for three straight years.

      I do plan to buy more shares of MO. However, it is overvalued and the price needs to come down before I buy more.

      Thanks for reading and commenting.

  3. That’s a great increase from one of the best dividend growth stocks to own! I’m curious to see where MO goes in the next few years… the recent drop shocked many investors, and some are arguing that MO’s business will continue to contract over time. Perhaps so, but I’ll ride the dividend train for a while longer!

    • Thanks FerdiS for stopping by. Yes, the stock price has dropped a lot. I am going to do the same and continue to ride this amazing divided train. Best of luck to you.

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