9:33 this monring I added Altria Group Inc, MO:NYSE to my IRA retirement account bringing my retirement allocation to 50% of target. I also hold 100% of target in my investment account with a average cost basis of $20.43.
MO yields an annual dividend of 5.87% better than any bond fund you could buy.
S&P rates MO a 5 star buy with a 12 month price target of $29. S&P has this to say about MO financial trends:
FINANCIAL TRENDS. MO continues to increase its top line through pricing and acquisitions, funded primarily from significant operating cash flow. Its revenue net of excise taxes rose at a 2.7% compound annual growth rate (CAGR) from 2006 to 2010, while GAAP operating income rose at a 8.4% CAGR over that period
The Street Rates MO a Buy with a due to strong revenue growth, solid stock price performance, good cash flow from operations and expanding profit margins.
Altria Group, Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes, wine, and other tobacco products in the United States and internationally. It primarily offers cigarettes under the
Marlboro, Virginia Slims, and Parliament brands; smokeless tobacco products under the Copenhagen,
Skoal, Red Seal, and Husky brands, as well as Marlboro snus; and machine-made large cigars and pipe tobacco.
Marlboro is the largest selling brand of cigarettes in the world. It is made by Philip Morris USA (a branch of Altria) within the US, and by Philip Morris International (now separate from Altria) outside the US. It is famous for its billboard advertisements and magazine ads of the Marlboro Man.
The company also maintains a portfolio of leveraged and direct finance leases principally in transportation, including aircraft, as well as power generation and manufacturing equipment, and facilities. It serves wholesalers, including distributors; large retail organizations, such as chain stores; and the armed services.
The company was founded in 1919 and is headquartered in Richmond, Virginia.