Acquisition MO

Altria_Company_LogoRecently, I purchased some shares of Altria Group, Inc. (MO) for the very first time into my portfolio and lucky me, the price kept going and going down all the way to around $61 per share. I knew all the short terms fears would be paying off big time especially in long term perspective since the whole story created huge fluctuation for the stock price. Well, I essentially dollar cost averaged and purchased some more shares of this starwort tobacco business. What is not to love here?

Company Overview: 

Altria Group, Inc. was founded in 1919 and is headquartered in Richmond, Virginia. Essentially, the company through its subsidiaries manufactures and sells cigarettes, smokeless products, and wine in the United States. It offers a diversified portfolio of cigarettes primarily under the Marlboro brand; cigars principally under the Black & Mild brand; and moist smokeless tobacco products under the Copenhagen and Skoal, Red Seal, and Husky brands. The company also produces and sells varietal and blended table wines, and sparkling wines under the Chateau Ste. Michelle, Columbia Crest, and 14 Hands names; and imports and markets Antinori, Torres, and Villa Maria Estate wines, as well as Champagne Nicolas Feuillatte in the United States. Lastly, it provides finance leasing services primarily in aircraft, electric power, railcar, real estate, and manufacturing industries.

Statistics:

  • Dividend Yield: 4.3%
  • 3Yr Dividend Growth Rate: 8.6%
  • Payout Ratio: 32.13%
  • P/E: 8.0
  • Consecutive Years of Dividend Raises: 9
  • Dividend Payout: Quarterly

I purchased 25 shares of Altria Group, Inc. (MO) for the price of $61.2075 per share for a total investment of $1,530.19 adding around $66.00 to my annual dividend income.

This is the 8th time I am initiating a stock acquisition this year. This transaction is my additional purchase of MO shares into the portfolio. As of today, I now hold a total of 46.22 shares of the company. Additionally, MO ownership stake represents to be around 2.7% of my total portfolio value.

Conclusion:

The Portfolio “The Dividend Machine” has been updated with link > here.

Thank you for reading & have a great day!

Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedInPin on PinterestShare on RedditShare on TumblrEmail this to someone

6 Comments

  1. Doug Arnold on October 22, 2017 at 21:33

    Mo is awesome it has my stamp of approval. Have owned it since the recession which was able to buy it cheap. Some people are scared about it but they have always weathered the storms so far. They own 10 percent of Bud and part of a wine company and part of a cigar company plus smokeless tobacco and e-cigarettes so they are well diversified.

    • DividendVet on October 23, 2017 at 17:33

      I believe that Altria is one of those main core portfolio holdings that has been doing tremendously well over the years, which makes me very excited for purchasing more shares of this business. As you mentioned very well diversified. Can’t wait to see the growth in the future.

      Good hearing your stamp of approval 🙂

  2. FiscalVoyage on October 25, 2017 at 20:35

    Great buy. I own MO as well and it has been great for me. Hope it is great for you as well.

    • DividendVet on October 26, 2017 at 21:19

      If the business will serve the way it has been, then it should be wonderful. Either way money will be making money.

      Good hearing your experience with Altria.

  3. Dividend Diplomats on October 25, 2017 at 21:19

    Woah – Thanks for putting this stock on my radar. Didn’t realize MO’s price has fallen so much recently. Great yield, great company, great DGR. I own PM but would love to add the other half of the old company. I saw this P/E ratio on several sites. I was wondering if you knew which earnings figure was used to calculate it. Using the average earnings estimate on Yahoo Finance, I am calculating a P/E ratio closer to 19X. That being said, it is still below the market and would be on my radar. I’m pumped. Congrats on the purchase and putting this one on my radar.

    Bert

    • DividendVet on October 26, 2017 at 21:28

      Your welcome, but yeah the P/E is showing on my E*Trade brokerage account closer to 8.0 for the price I paid, Yahoo Finance is showing the same. Not sure what website you are looking at, but I would reverify your research as it is selling for CHEAP now. Beautiful business at a beautiful price, almost private company valuations. 🙂

      Thanks for stopping by!

Hello,

Do NOT follow this link or you will be banned from the site!
How to whitelist website on AdBlocker?