Investors seeking regular passive income should take note of shares in the leading tobacco company, Altria Group (NYSE: MO). Not only is Altria a Dividend Aristocrat, but it also offers an enticing yield of nearly 10% based on its annual dividend of $3.92 and its closing price of $40.18 on February 16.
Stock Target Advisor’s Review on Altria:
Stock Target Advisor proposes the adoption of Altria Group as a lucrative investment, citing a target price of $55.5, which paints a prospect of a robust 38.13% price deviation in the next 12 months.
5 analysts bend towards a more conservative approach, unlacing an average target price for Altria Group hovering at $46.90 over the next year with a Hold rating. Nevertheless, Stock Target Advisor’s interpretation leans towards the bullish side, pivoted on 8 positive indicators blunting the impact of 3 negative signals.
Key Points for Stock Investors:
Below are the key insights for stock inventors and financial analysts.
- Dividend Aristocrat Status: Altria has earned its place among the prestigious group of Dividend Aristocrats. These are companies that have consistently increased dividends for at least 50 consecutive years. Altria’s recent dividend hike in August 2023 marked the 58th time it has boosted its dividend in the last 54 years.
- Sustainable Dividends: While a high yield can raise concerns about sustainability, Altria’s solid dividend payment history and future growth forecast ease apprehensions. The company expects to grow its earnings at a CAGR of mid-single-digits through 2028. This growing earnings base positions Altria to deliver higher dividend payments. Additionally, Altria targets mid-single-digit dividend per share growth annually through 2028.
- Strengths: Altria’s leadership in the U.S. tobacco space, expanding smoke-free portfolio, and focus on reducing debt contribute to its earnings stability and ability to cover dividends.
Conclusion:
Altria’s quarterly reports for the quarter culminating on 2023-09-30 unfold the narrative of a prosperous period. The company registered revenue of $6.28 billion, coupled with a robust 34.48% profit margin. This marked robust performance is echoed in Altria’s annual fiscal charts that denote a stable growth gradient in revenue and income.
