Followers | 679 |
Posts | 140990 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Thursday, September 28, 2023 9:07:41 AM
By: Investing.com | September 28, 2023
The consumer staples company, Altria (NYSE:MO), well-known for its high dividend yield of 9.37%, has been under scrutiny as the long-term sustainability of its business model comes into question. The company's dividend, which has been increased annually for 54 consecutive years, is currently safe with a payout ratio of about 100% and a cash dividend payout ratio of roughly 80%. However, the declining volume of cigarette sales poses a significant challenge to Altria's business.
Altria's Marlboro, the largest cigarette brand in the U.S., holds a substantial 42% market share. Despite this dominance, the company's cigarette business is experiencing a long-term secular decline, with smoking habits becoming increasingly less popular. In Q2 2023, Altria sold approximately 21 billion cigarettes, down from nearly 23 billion in the same quarter of the previous year — an 8% decline in volume. This trend isn't new; over the past five years, since Q2 2018, the company's volume has fallen by almost 25%, from around 27.7 billion cigarettes.
To maintain its growing dividend amidst falling sales, Altria has been increasing cigarette prices. However, this strategy may not be sustainable in the long term as it risks exacerbating volume decline. The company's attempts to diversify into marijuana and vaping have so far not been successful. Although Altria recently purchased NJOY in another attempt to break into the vaping market, past failures warrant caution from investors.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent MO News
- Philips Stocks Soar 47% Following US Deal, Tesla Bolsters Presence in China, and More News • IH Market News • 04/29/2024 11:11:24 AM
- Anglo American Rejects BHP Group’s Offer, Toyota Invests $1.4 Billion in Indiana, and More News • IH Market News • 04/26/2024 11:48:07 AM
- U.S. Futures Drop in Pre-Market Trading as Tech Stocks Plunge After Meta Issues Gloomy Forecast • IH Market News • 04/25/2024 11:53:54 AM
- Altria Reports 2024 First-Quarter Results; Reaffirms Full-Year Guidance • Business Wire • 04/25/2024 11:00:00 AM
- Altria to Host Webcast of 2024 First-Quarter Results • Business Wire • 04/11/2024 02:00:00 PM
- Altria Enters $2.4 Billion Accelerated Share Repurchase Transactions in Connection with Closing of Offering of Anheuser-Busch InBev Stock • Business Wire • 03/19/2024 08:15:00 PM
- Adobe Stock Drops Following Below-Estimate Projections, Cardlytics Surges with Unexpected Profit, and More News • IH Market News • 03/15/2024 11:30:55 AM
- Altria to Significantly Enhance Cash Returns to Shareholders Through Expanded Share Repurchase Program in Connection with Pricing of Offering of Anheuser-Busch InBev Stock; Raises 2024 Full-Year Earnings Guidance • Business Wire • 03/14/2024 01:56:00 PM
- Fisker’s Shares Take a Hit Amid Speculation of Bankruptcy, Altria Divests from AB InBev to Fund Stock Repurchase Initiative • IH Market News • 03/14/2024 11:39:32 AM
- Altria Announces Intent to Sell a Portion of its Investment in Anheuser-Busch InBev • Business Wire • 03/13/2024 08:15:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/01/2024 09:21:02 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/01/2024 09:20:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/01/2024 09:20:12 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/01/2024 09:19:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/01/2024 09:19:17 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/01/2024 09:18:57 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/01/2024 09:18:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/01/2024 09:18:27 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/29/2024 08:11:06 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/29/2024 08:10:53 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/29/2024 08:10:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/29/2024 08:10:24 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/29/2024 08:10:10 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/29/2024 08:09:48 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/29/2024 08:09:21 PM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM
Avant Technologies to Implement AI-Empowered, Zero Trust Architecture in Its Data Centers • AVAI • Apr 29, 2024 8:00 AM
Bantec Reports an Over 50 Percent Increase in Sales and Profits in Q1 2024 from Q1 2023 • BANT • Apr 25, 2024 10:00 AM
Cannabix's Breath Logix Alcohol Device Delivers Positive Impact to Private Monitoring Agency in Montana, USA • BLO • Apr 25, 2024 8:52 AM