Wednesday, August 31, 2016

Recent buy: MO

I purchased 22 shares at $65.96 today in my 401k. Commissions were $8.95

MO will yield around 3.7% after their recent 8% dividend hike announcement some days ago. I found this raise to be conservative and prudent. They could of done more but they decided to keep with their usual 8%. They have consistently raised their dividend around 8-9% for many years already and this machine continues to increase dividends at a very consistent rate. I expect dividends to be raised by 8% again next year as well considering they will easily be able to cover this from the proceeds of the SABMiller sale.

MO has a forward P/E of 19.74 and with a yield of 3.7% and a dividend growth of 8%, that makes it have a growth in dividend of 3.7+8=11.7% which is very good. I think shares are decent value today and going forward MO will offer high income growth and high yield. Not many high yield (greater than 3% yield) can show such a high growth.


  1. Just say no to MO!!! Just kidding. I like their financial picture I just have a tough time getting on board Phillip Morris.

    Don't get me wrong, it's been a great stock for many investors but the product they sell is tough to get behind.

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  3. Great stock buy. it has been one of best performing stocks since i bought it.

  4. MO is a great stock -- its a home run (doubler) for me since I bought it. My only concern would be that its trading at a premium to fair value now. Hopefully the stock continues to go from strength to strength, and it all works out just fine!