Forget Altria Stock – Earn 9.5%+ Yields with These 2 SWANs Instead!
December 12, 2023
🌧️Trending News
If you’re looking for an alternative to Altria Group ($NYSE:MO) (NYSE: MO) stock for a higher yield investment, then look no further! With its 9.5%+ yields, these two SWANs (Sleep Well At Night) stocks provide a great alternative to Altria and are well worth considering. Altria Group is a large multinational tobacco company headquartered in Henrico County, Virginia. Altria is the parent company of Philip Morris USA, U.S. Smokeless Tobacco Company, John Middleton, Nat Sherman, Ste. Michelle Wine Estates, Philip Morris Capital Corporation, and many other smaller companies. Altria owns some of the most popular cigarette brands in the world, including Marlboro, Virginia Slims, Benson & Hedges, and Parliament. The company also produces smokeless products like Copenhagen and Skoal, as well as wine and beer brands such as Chateau Ste. Michelle and MillerCoors. In addition to tobacco products, Altria also produces food products through its wholly-owned subsidiary, Kraft Foods Group. Altria stock has been a popular investment for many years due to its strong dividend yield and stable returns.
However, if you’re looking for an even higher yield investment with a similar level of stability, then you should consider investing in these two SWANs instead. Both stocks offer yields of 9.5% or higher – more than double the dividend yield of Altria Group – which makes them ideal for income-oriented investors. By investing in these SWANs, you can enjoy the same level of stability as Altria, but with a much higher yield.
Analysis
At GoodWhale, we recently conducted an analysis of ALTRIA GROUP‘s fundamentals. Our Star Chart report showed that the company has a high health score of 8/10, which indicates that its cashflows and debt levels are strong enough to safely ride out any financial crisis. Despite the company’s overall strong health score, we identified some fundamental weaknesses. Specifically, the company scored poorly in asset and growth categories. However, ALTRIA GROUP scored well in dividend and profitability categories. This has led us to classify the company as a ‘cow’, which are companies that have a track record of paying out consistent and sustainable dividends. Given ALTRIA GROUP’s perceived strength and consistency in dividend payments, we believe that investors who are looking for steady income through dividends may be interested in this company. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Altria Group. More…
| Total Revenues | Net Income | Net Margin |
| 20.56k | 8.74k | 42.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Altria Group. More…
| Operations | Investing | Financing |
| 8.68k | -220 | -9.42k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Altria Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 36.47k | 39.83k | -1.93 |
Key Ratios Snapshot
Some of the financial key ratios for Altria Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.0% | 2.2% | 58.1% |
| FCF Margin | ROE | ROA |
| 41.2% | -206.5% | 20.5% |
Peers
The tobacco industry is fiercely competitive, with Altria Group Inc up against Swedish Match AB, Imperial Brands PLC, British American Tobacco PLC, and other companies. All are vying for a share of the global tobacco market, which is estimated to be worth $837 billion.
– Swedish Match AB ($LTS:0GO4)
Founded in 1862, Swedish Match is a leading manufacturer of tobacco products with a portfolio of well-known brands, including Red Man, Timber Wolf, and White Owl. The company also produces a wide range of smokeless tobacco products, including snus and moist snuff, as well as cigars and matches. Swedish Match is headquartered in Stockholm, Sweden, and has operations in more than 90 countries.
Swedish Match has a market capitalization of 167.51 billion as of 2022 and a return on equity of -107.57%. The company’s products are sold in more than 90 countries around the world.
– Imperial Brands PLC ($LSE:IMB)
Imperial Brands PLC is a tobacco company with a market cap of 19.07B as of 2022. The company has a Return on Equity of 50.52%. Imperial Brands PLC is a leading international tobacco company, with products sold in over 160 countries. The company’s portfolio includes well-known brands such as Gauloises, West, and Rizla. Imperial Brands PLC is committed to providing shareholders with long-term value through a combination of growth and dividend income.
– British American Tobacco PLC ($LSE:BATS)
British American Tobacco PLC is a large multinational tobacco company with operations in over 50 countries. The company has a market capitalization of over $73 billion as of 2022 and a return on equity of 8.35%. British American Tobacco is one of the world’s largest producers of cigarettes and other tobacco products. The company’s brands include Dunhill, Lucky Strike, and Pall Mall. British American Tobacco also has a strong presence in the e-cigarette and vaping market with its Vype and glo brands.
Summary
Altria Group is a well-established tobacco and smokeless products manufacturer with a strong history of providing steady returns for investors. The company has seen consistent dividend growth over the past few years, and its stock price has been relatively steady despite occasional market volatility. Analysts recommend investing in Altria stock due to its strong financial performance and favorable industry outlook. Altria’s wide range of products, its long-term commitment to dividends, and its strong balance sheet make it a safe bet for conservative investors.
However, there are better options for risk-tolerant investors who seek higher yields. These include the “SWANs” (sleep well at night) stocks that offer attractive yields with lower risk than Altria.
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