Altria Yields 7.5%

I really like shares of Altria (MO) and it’s probably a good candidate for next year’s Buy List. The stock is going for about 10 times this year’s earnings. The company just raised its quarterly dividend by two cents a share to 34 cents. That works out to an increase of 6.25%, and a yearly dividend payment of $1.36 comes to a yield of 7.5%.
I’ve also been impressed by the recent earnings trend. For Q2, Altria earned 50 cents a share, three cents better than expectations. The company also raised its 2009 EPS outlook for continuing ops to a range of $1.51 to $1.56 from the earlier range of $1.47 to $1.52. The net EPS range increased to $1.72 to $1.77 from $1.70 to $1.75, hence the roughly 10 times earnings I mentioned before.

Posted by on September 1st, 2009 at 12:35 pm


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