If this stock ever pulls back to $20, I’m up for another 1/4 buy. I already own 1/2 of my total target investment in MO.
One reason is that a federal effort dating back to the administration of President Bill Clinton to get the industry to “disgorge” some $280 billion in profits could be finally dead. “Although we are disappointed that the Supreme Court did not grant our petitions challenging the basis for the lawsuit, we are pleased that [it] has confirmed once again that disgorgement is not an available remedy,” said Murray Garnick, the Richmond, Va.-based company’s associate general counsel. Source: Marketwatch
With a 7%+ dividend yeild, MO is a good place to store money. X-Dividend Date has passed, it was 6/11/10.
The Street updated their opinion yesterday, maintaining a Buy Rating on the stock, stating
The company’s strengths can be seen in multiple areas, such as its solid stock priceperformance, growth in earnings per share, revenue growth, expanding profit margins and notable return onequity.
S&P rates MO a STRONG Buy, stating
Our 12-month target price of $24 is based on historical and peer forward P/E multiples.We apply a multiple of 12X, slightly below the average historical forward P/E, but a slight premium to the peer-average forward P/E of 11.5X, to our 2011 EPS estimate to calculate our target price.