Recs

14

4-Star Stocks Poised to Pop: Altria

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!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Philip Morris International is a Motley Fool Global Gains pick. The Fool's disclosure policy always gets a perfect score.


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Brian Pacampara
TMFEZMagic

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

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Related Tickers

10/24/2014 4:03 PM
MO $47.49 Up +0.36 +0.76%
Altria Group, Inc. CAPS Rating: ****
AOI $1.97 Down -0.02 -1.01%
Alliance One Inter… CAPS Rating: ****
PM $88.06 Up +0.44 +0.50%
Philip Morris Inte… CAPS Rating: ****
RAI $61.55 Up +0.56 +0.92%
Reynolds American,… CAPS Rating: ****

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