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.
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.
What do you think of the company? Plan on owning it? or why not?
Image by Sira Anamwong at FreeDigitalPhotos.net