"It is the best of both investing worlds. Altria Group Inc. ( NYSE: MO) stock is outperforming the market so far this year. And it has a forward yield of 6.95%. To make matters even better, Altria has raised its dividend for 56 straight years. It has a rock-solid balance sheet and generates immense amounts of cash. Altria's shares are up 6% this year, and the S&P 500 is little more than flat."
"What Altria Has Going for It Altria offers several advantages to shareholders. For example, although fewer people smoke today than several decades ago, those who do smoke have not been deterred by the rising price of cigarettes. A pack of cigarettes costs about $10, depending on the state tax. Altria owns Marlboro, the world's most famous cigarette brand. Ninety percent of its cigarette sales come from the Marlboro brand. There is a trend toward smokeless tobacco products. Altria's product line includes oral tobacco products."
Altria's stock has outperformed year-to-date, rising about 6% while the S&P 500 is roughly flat. The company offers a forward yield near 6.95% and has increased its dividend for 56 consecutive years. Marlboro represents roughly 90% of Altria's cigarette sales and cigarette prices average around $10 per pack depending on state taxes. The most recent quarter showed revenue down 3% to $6.1 billion while earnings rose 5.2% to $1.41 per share. Management expanded the share-repurchase program, raised full-year guidance, and emphasized a strong balance sheet and significant cash generation. Some investors avoid tobacco stocks for ethical or health concerns.
Read at 24/7 Wall St.
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