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)

Source: FastGraphs.com

 

 

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

 

Thanks for reading, and don’t forget to connect with me through Facebook and Twitter.

 

Image by Sira Anamwong at FreeDigitalPhotos.net

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Comments

  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.

    -Lanny

    • 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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