Tobacco Company Altria Offers Attractive Valuation for Income Investors

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The company offers a variety of well-known brands, including Marlboro, Copenhagen, Skoal, and Virginia Slims. Altria($NYSE:MO)’s products are sold through a variety of channels, including supermarkets, tobacconists, and convenience stores. The company has a long history of paying dividends and is currently yielding around 9%. With a strong balance sheet and cash flow, Altria is well-positioned to continue paying dividends in the future. While the stock is not without risk, income investors may find the current valuation attractive.

Dividends

For the fiscal year 2022, ALTRIA issued a dividend per share of 3.6 USD. For the last two years, the company has paid dividends of 3.52 USD and 3.4 USD. The dividend yields from 2020 to 2022 are 8.41%, 7.53%, and 7.27%. The three-year average dividend yield for the company is 7.74%. If you are looking for dividend stocks, you may add ALTRIA to your list of consideration.

Market Price

On Wednesday, ALTRIA stock opened at $42.1 and closed at $41.8, down by 2.8% from previous closing price of $43.0. The stock was down on news that the FDA is investigating reports of lung illnesses linked to vaping. This comes as a blow to the company, which has been trying to position itself as a leader in the vaping industry.

VI Analysis

Investors often consider a company’s fundamentals when making investment decisions. The company’s financials reflect its long-term potential and provide insights into its stability and growth prospects. However, analyzing a company’s financials can be complex and time-consuming. The VI Risk Rating app makes it easy to analyze a company’s financials and assess its risk profile. Based on the VI Risk Rating, ALTRIA is a medium risk investment in terms of financial and business aspects. However, there are some potential risks in the business and financial areas that investors should be aware of. Overall, the VI Risk Rating app provides a simple and convenient way to assess a company’s risk profile and make informed investment decisions.

Summary

Altria’s share price has been under pressure in recent months due to concerns about declining cigarette sales, but the company’s diversified business model and solid financial position suggest that it is well-positioned to weather these challenges. The company’s strong balance sheet and cash flow generation ability suggest that it has the capacity to continue paying its dividend even in the face of declining cigarette sales. Altria’s share price may be under pressure in the near term, but the company’s long-term prospects remain favorable.