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JimVanMeerten (67.58)

Might MO for income

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August 19, 2011 – Comments (0) | RELATED TICKERS: MO

Complete Article & Graphs

Income investors keep looking for stable prices and steady income and look for Altria Group (MO) to give them both.  The stock is beginning to recover from its recent dip so income investors might put it on their watch lists but growth investors should look elsewhere.

Barchart technical indicators:
1 - Barchart hold/neutral based on recent price recovery

2 - Price just crossed its 20 day moving average

3 - 5 new highs and up 6.73% in the last week

4 - Relative Strength Index 51.09% and rising

5 - Barchart computes a support level at 25.61

6 - Recently traded at 26.00 which is slightly below its 50 day moving average of 26.41

Summary:  Only income investors should look to acquire Altria Group (MO).  The generous dividend looks very secure and the large stock buy back should increase its P/E ratio.  Writing covered calls could raise your income but since price growth is limited cover calls will only raise your income marginally.  As always I advice younger and more aggressive investors to  look for stocks with double digit projects for growth of sales and income and this stock is not it.
Jim Van Meerten is a Marketocracy Master

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