Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, tobacco giant Altria (NYSE: MO ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Altria's business and see what CAPS investors are saying about the stock right now.
Altria facts
|
Headquarters (Founded) |
Richmond, Va. (1919) |
|
Market Cap |
$42.5 billion |
|
Industry |
Tobacco |
|
Trailing-12-Month Revenue |
$16.8 billion |
|
Management |
Chairman/CEO Michael Szymanczyk CFO David Beran |
|
Major Brands |
Marlboro, Parliament, Players, Virginia Slims |
|
Return on Capital (Average, Past 3 Years) |
19.2% |
|
Cash/Debt |
$1.9 billion / $12.0 billion |
|
Dividend Yield |
6.9% |
|
Competitors |
Reynolds American (NYSE: RAI ) British American Tobacco (NYSE: BTI ) |
|
Suppliers |
Alliance One International (NYSE: AOI ) |
|
Other Highly Rated Tobacco Stocks |
Philip Morris International (NYSE: PM ) Lorillard (NYSE: LO ) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 1,963 All-Star members who have rated Altria believe the stock will outperform the S&P 500 going forward. These bulls include dswinters and edwjm, both of whom are ranked in the top 10% of our community.
Just last month, dswinters tapped Altria as a stable way to earn some income:
Great cash flow. Not a growth stock. Smoking will keep getting continued pressure, but pricing will keep up with declines of total smokers. Dividend will be solid for years and the percentage of dividend alone will outperform the market in the short term. In addition, smokeless tobacco will continue to thrive.
In a pitch from two weeks ago, edwjm agrees with that line of reasoning:
Altria Group... deals in the most addictive legal drug in the country! Yes, litigation is a major expense, but as long as they are making oodles of money, they can afford such expenses. They have pricing power great enough to pass on all tax increases. This is a safe company with a very safe dividend. At the current price of $20.77, the p/e is less than [13.5] and the [dividend yield] is 6.9%.
What do you think about Altria, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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