Altria Group, Inc. (MO)

This site is ridiculous I got MO before it seperated from PM and it went down and it did not give me any of PM and knocked my score all the way down when I made a good pick in all reality.

I've been thinking that Altria is undervalued for a while now, but have been hesitant to pull the trigger in CAPS because, until recently, dividends weren't figured into returns.

With the new CAPS release, though, that's no longer an issue, so it's time for this Fool to jump in.

This company will continue to flip flop int he market depending on the new TRUTH campaigns. Lets get one thing straight here Cig. companies will never go otu of business no matter how many people sue fo rmedical conditions we all know could have been prevented. Billions of dollars a year are made by these compaines not only here in America but abroad wherer they are parent companies to the same brands overseas.

You could buy Treasuries that yield less than 3.5% or you could buy this stock that yields 7.5% and has a history of raising the dividend every year. Yes, there is probably some risk, but for that much difference in yield I think it's well-justified.

Some might justify not buying cigarette stocks because they are harmful to people's health. Based on that justification I'd say every time you buy a Treasury you're contributing to killing someone's Grandma.

As for me, I'll go ahead and take the 7.5% yield. But don't think that means I'm against Obamacare. If it passes I'll be happy to apply for a job on one of the death panels.

I enjoy my Republicanism. It's fun being mean.

This stock will definetly beat the market. It's in required consumer goolds. It's infeasible, yet possible to give up goods that are needed for survival. (trying to create some dialog with that statement.

Undervalued and pays lots o dividend

Despite the new laws and anti-smoking ads, smoking is still very common and popular. The lawsuits are in the past, it doesn't matter how many places we kick smokers out of, they will continue to smoke where and when they can. Having read about the chemical interactions of it, I understand that it's not simply a choice to quit and that there is actually some benefit derived from it. I'm not about to take it up myself, but I'm not going to persecute those who do. Meanwhile, I may as well take advantage of an industry that is sustaining its growth despite years of opposition.

Smoke 'em if you got 'em.

And Altria's got 'em : dividends that is, and it's one of the most consistent dividend payers over the last, I don't know, billion years?

But it's not just the dividends and the cigarettes. They've consistently beat the S&P for years, and unless governments start banning smoking or some- ... what's that? ... oh, well at any rate, I think we can at least give it five years.

I believe this stock will outperform the S&P in the long run because of it's underlying business economics. I like the fact that they have sectored their tobacco brands to different socio/economic strata--Marlboro, Virginia Slims, and Parliament. These along with Copenhagen and Skoal chewing tobacco dominate the self space at all the outlets where tobacco is sold to the general public. Black and Mild cigar and pipe tobacco (John Middleton) is also another valuable pickup for different segments of the population. If you want a vehicle to deliver tobacco in the US, Altria can't be beat. Having said this, I am taking a wait and see attitude so I can collect enough data to see how Altria fares without its' international market outlets. It will a very interesting stock to keep an eye on. It will also be very interesting to have enough data to discount the company's position to a present value compounding rate of return.

Short term, big law suites are over, but a bunch of little ones are coming since a FL class action suite/judgement was thrown out. If the rumor is true, (started by the CEO I believe a few years ago) and MO does split into three companies. Kraft will need to do a "sink or swim" or put themself back on the seller block. I don't think they can stand on thier own two feel. MO is a cash cow and Kraft need to be weened' off that nipple.

Chosen to be a part of the High Yield Portfolio strategy. Originally created by Fool UK's Stephen Bland (TMFPyad) in November 2000, the High-Yield Portfolio (HYP) strategy invests in a diversified group of 15 blue chip dividend-paying stocks with strong dividend cover, relatively low debt, and a history of increasing dividend payouts. The holding period is theoretically forever -- unless a stock is bought out or cuts its dividend.

Sound crazy? Well, the point of the portfolio is not necessarily for capital gains (although that's certainly a bonus), but to produce increasing amounts of annual dividend income. Daily price fluctuations matter not -- it's the income that matters -- so it removes emotional trading from the picture entirely. Doubters should note that the original UK HYP from November 2000 returned 68% through December 2007 (while the FTSE 100 lost 8%). What's more, the portfolio income payout increased 29% over that seven year period, from 3,451 pounds to 4,462 pounds per year.

MO is sitting around 79, with earnings growth estimated at 6%, sales growth at 4%, a strong divided of 4.4%, and a 1 yr target of 89-95. Pending litigation is making people ware, but they shouldn't be because these expenses are already built into its expense model. MO is a GREAT consumer products company.

Growth in Asia will not be what people predict, the middle east and Russia are smoking havens but Nepal actually bans smoking - other countries will severly restrict sales. Additionally domestic smoking continues to decline. There is lots of think about with this company but their growth may well be cut. Additionally there has been talk of normalizing the dividend following the Kraft spin off if the dividend falls there will be lots of sell pressure from institutions that have "dividend philosiphys". Trouble for this company , I predict looms on the horizon.

Evil elements:
Among tobacco companies, Philip Morris is notorious. Now called Altria, it is the world’s largest and most profitable cigarette corporation and maker of Marlboro, Virginia Slims, Parliament, Basic and many other brands of cigarettes.

Documents uncovered in a lawsuit filed against the tobacco industry by the state of Minnesota showed that Philip Morris and other leading tobacco corporations knew very well of the dangers of tobacco products and the addictiveness of nicotine. To this day, Philip Morris deceives consumers about the harm of its products by offering light, mild and low-tar cigarettes that give consumers the illusion these brands are “healthier” than traditional cigarettes.

Although the company says it doesn’t want kids to smoke, it spends millions of dollars every day marketing and promoting cigarettes to youth. Overseas, it has even hired underage “Marlboro girls” to distribute free cigarettes to other children and sponsored concerts where cigarettes were handed out to minors.

As anti-tobacco campaigns and government regulations are slowing tobacco use in Western countries, Philip Morris has aggressively moved into developing country markets, where smoking and smoking-related deaths are on the rise. Preliminary numbers released by the World Health Organization predict global deaths due to smoking-related illnesses will nearly double by 2020, with more than three-quarters of those deaths in the developing world.

From http://karim.gnn.tv/blogs/11333/Report_The_14_Most_Evil_Corporations

This is my favorite value play here. With the market possibly running a bit too far too fast, I like the dividend at over 7%. This screams undervalued, and I will add on any pullbacks

The best performing investment since 1957? Throw in the Kraft split and a regulatory and legal environment that is telling us that its product is not going to be banned or litigated out of existence.

A marketing machine. Any company that can continually find ways to grow market share in the most adverse litigation enviornment offers strength against all odds. The spin off of Kraft and their Internatiopnal Tobacco business will drigve the shares to the valuation the combined company deserves. Kraft has the right CEO to make that portion of the portfolio sing. The street has already responded positively to Irene Rosenfelds actions - which at this point have been relatively little - management chaqnges but their long term impact will be huge. The CMO and other moves have put the right people in strong positions. International Tobacco will grow in a more relaxed legal context and the US division can become much like an MLP paying an anuity to the Feds while spinning off cash to shareholders!

Despite the hatred out there for dreaded tobacco, Altria continues to prosper. People will continue to use tobacco products -- across the globe -- as well as eat cheese! Maybe that's why it's been, and will continue to be, a winner.

income from MO to the states is too juicy to sue this beast into bankruptcy. even the anti-tobacco folks don't want MO to weaken too badly as their own livelihoods depend on it. thank you for smoking!