Recent Buy: Altria Group, Inc. (MO)

ID-100426334 Recent Buy: Altria Group, Inc. (MO)I added more shares to my portfolio with the purchase of Altria Group, Inc. (MO)

22 shares @ $58.73 on 7/31/2018.

This increases my forward 12-month dividend income by $61.60 to a total of $6,012.34

I also updated my portfolio page to reflect the change.




My Thoughts

I have been wanting to add to my position for the longest. This company was actually the sixth company I ever bought. It was way back in August of 2013. So 5 years later I finally added more shares. As you can see from the FastGraph below, the stock went up and fast in a short time frame. At one point the stock was over 100% in profit since I first bought it.

It came back down a lot to a point that I was interested in researching more and to determine if I should finally add to it. Let looks at the numbers.

The stock sports a PE of 10.61 right now and the 5-year PE average is 17.42. The company has a dividend payout ratio of 77% based on 2017 earnings.

Altria Group has a great dividend history. It has been paying a rising dividend for 49 years! The most recent raise was declared on March of this year. That rase was 6.1%. Actually, the 5-year dividend growth rate is 8.3%. So you have a nice growth rate with a nice dividend yield of 4.7%.

CRFA predicts earnings of $3.99 for this year and $4.37 for next year.

Based on 2018 earnings of $3.99 and a 5-year PE average of 17.42, The company fair valued is $69.51. This tells us that the stock is 17.21% undervalued.

This is why I think that Altria Group is a BUY.


MO-Stock-price Recent Buy: Altria Group, Inc. (MO)




What do you think of the company? Plan on owning it? or why not?


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  1. FV –

    I know the feeling when you buy a stock SO long ago and you never think you’ll ever be able to buy it again at even close to those previous prices. I think you did the right thing in evaluating them on where they current trade at from a P/E and a yield standpoint. I dig it and congrats on the bang to the forward dividend income.


    • Hi Lanny, im super happy to be able to add more shares to MO. Almost 5 years. Crazy how fast time Flys. I remember buying it so well. Thanks for stopping by!

  2. Felix,

    Nice purchase and the Fast Graphs just reiterates that this company is trading at a fair or slightly undervalued value. I don’t think we’ll be disappointed in 10 years buying at these prices, plus I imagine the dividend will have doubled by that time as well.

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