-
Altria Group's dividend comprised a large information of the stock's full return.
-
The shares person a precocious dividend yield.
-
10 stocks we similar amended than Altria Group ›
It's instructive to look backmost to spot however a banal has performed. You tin usage that accusation to look up and deliberation astir the aboriginal return.
Altria Group (NYSE: MO) produces and sells baccy products successful the United States. It's a arguable business, but however person its shareholders fared implicit the past twelvemonth if they invested $1,000?
Altria's banal terms gained 6.9% implicit the past twelvemonth done Dec. 10. That's fractional the S&P 500 index's 13.8%.
But that doesn't archer the full story. You would person received dividends if you'd bought Altria's banal and if you'd invested passively successful the S&P 500. You request to origin those successful erstwhile calculating the full return.
Thanks to Altria's precocious dividend payments, the shares produced a full instrumentality of 13.5%. However, that inactive lagged the S&P 500's 15.6%.
Your $1,000 concern successful Altria's banal would've been worthy $1,135 erstwhile including the terms summation and dividend payments. That aforesaid magnitude invested successful the S&P 500 scale would've been worthy $1,156, however.
Altria Group whitethorn tempt investors who spot a precocious value connected dividends. The committee of directors has accrued payouts annually for a fig of years. Most recently, the institution raised October's payout by 3.9% to $1.06 a share.
At the caller rate, Altria's banal has a 7.2% dividend yield. That dwarfs the S&P 500's 1.1% yield.
However, the concern has been weakening. Most of Altria's gross comes from smokeable products, peculiarly cigarettes. The segment's apical enactment fell 1.3% successful the 3rd 4th to $4.6 billion. Its cigaret measurement continued falling, and its marketplace share, peculiarly its halfway Marlboro brand, has been dropping.
With little measurement and mislaid marketplace share, Altria's semipermanent concern prospects don't look bright. Hence, I'd walk connected the shares contempt the dividend yield.
Before you bargain banal successful Altria Group, see this:
The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Altria Group wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.
Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you’d person $513,353!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $1,072,908!*

10 hours ago
3




English (CA) ·
English (US) ·
Spanish (MX) ·