I added more shares to my portfolio with the purchase of Altria Group, Inc. (MO)
22 shares @ $58.48 on 8/29/2018.
This increases my forward 12-month dividend income by $61.60 to a total of $6,415.94
I also updated my portfolio page to reflect the change.
So after going over 5 years without buying more shares of this company, This will be my 2nd buy in as little as a month.
I was able to buy the same amount of shares as my last buy, but this time I was able to pick up $0.25 cheaper. No big deal when its 5-10 years down the road.
I would have added more but MO had a POP and it now sits at $62.44. I would buy more when it nears a dividend yield of 5.50%. Even though the company is undervalued, I would still like to buy it when it is around 5.50% yield.
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 10% undervalued.
If I was just starting out and had no shares of MO, I would be definitely be buying even after the recent pop. This company has a great dividend history and they add value to shareholders.
This is why I still think that Altria Group is a BUY.
What do you think of the company? Plan on owning it or buying more shares? or why not?
Image by Sira Anamwong at FreeDigitalPhotos.net