I’m not addicted to smoking, in fact my wife and I don’t use any tobacco products. But I am addicted to buying wonderful businesses.
On 08/23 I fully expect MO to declare a dividend raise, their second for the year. The one earlier this year was unexpected but I believe accounts for some of the tax savings this year. The regular raise is in August and it’s around the 23rd on a Thursday every year. Somewhere between 2:45-3:00 E is when I expect the news.
My guess is a raise to .78. MO is one of the most shareholder friendly companies I know. They have agreed to pay out 80% of their earnings as dividends. This is why I expect the raise today.
The U.S. populations of smokers continues to decline, this is no secret. Since tobacco is inelastic, Altria has more than kept up with price increases. Altria has been working with Philip Morris on getting their IQOS system approved in the U.S. I think this will be a nice catalyst for the stock if approved late this year. Let’s also not forget that MO owns about 10% of AbInbev, a cash cow and huge beer business. They own not just Marlboro in the U.S., they own Skoal and Copenhagen, leaders in smokeless tobacco. They also own Nu Mark, their e-vapor business; Nat Sherman, a premium cigar company; Ste Michelle Wine , a popular and well known winery.
After Thursday’s raise, MO will yield over 5%. Show me another Blue Chip yielding 5% with an A or better credit rating. That’s why I can’t stop buying this great company.
MO has become about 15% of my portfolio. I am slowing purchasing but I’m looking forward to years of dividends increases to come.
If MO raises by .08 that will be an income boost of $403 yearly since I own 1260 shares. That will be by far my largest income increase from just a dividend raise.
What are you buying?
UPDATE from 3:30 E 08/23 (even better than expected, .10 raise, over 20% increase yoy):
| Altria Increases Quarterly Dividend by 14.3% to $0.80 per Common Share |
| RICHMOND, Va.–(BUSINESS WIRE)–Aug. 23, 2018– Altria Group, Inc. (Altria) (NYSE:MO) today announced that its Board of Directors voted to increase Altria’s regular quarterly dividend by 14.3% to $0.80 per common share versus the previous rate of $0.70 per common share. The quarterly dividend is payable on October 10, 2018, to shareholders of record as of September 14, 2018. The ex-dividend date is September 13, 2018.
The new annualized dividend rate is $3.20 per common share, representing a yield of 5.2% based on Altria’s closing stock price of $61.00 on August 17, 2018. Today’s dividend increase reflects Altria’s intention to return a large amount of cash to shareholders in the form of dividends and is consistent with Altria’s dividend payout ratio target of approximately 80% of its adjusted diluted earnings per share. Altria has increased its dividend 53 times in the past 49 years. |
And the raise was to 80 cents! My MO holdings are a fraction of yours (130 shares), but I may be looking to add now.
DWC,
It was an incredible raise. Counting the one earlier this year their dividend increased over 20% yoy! I don’t expect that in the future but high single digits for the long-term are a good guess.
Thanks for stopping by
All About Int –
PRetty damn close… but how do you like $0.80 per quarter instead!! WOW! Talk about great timing : )
-Lanny
Lanny,
Even better than expected! What a nice surprise. I’m guess prices will stay depressed until we hear about IQOS getting approved in U.S. If the stock drops to $55 I’ll be adding even more.
Cheers!
Hi Interest!
You definitely called that one ! 14% increase – woohoo!
Cheers,
MG
MG,
I was confident MO would raise on their usual day even though there was an earlier raise this year. They are the most shareholder friendly company I know.
Thanks for stopping by!
When I heard of the dividend raise I was super happy. I bought shares a few weeks ago and will now by another set this week!!
FV,
Nice job! I’ve bought a lot of shares lately. I can’t help myself. They are a wonderful company trading for a fair price.
That’s a great rise and I’mg glad I held on to my aswell. Been feeling that a slump was starting to appear in my portfolio but these stocks really paid for the slump I got in healthcare last quarter. Someone suggested me WWE and related stocks but I;m skeptical.
Either way, great going, man. That dividend raise is spot-on.