Meager Income

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Altria (MO) Raises Their Quarterly Dividend by 8.3%

Posted on | August 21, 2014 | No Comments

Altria Group, Inc., ticker symbol MO, through its subsidiaries, manufactures and sells cigarettes, smokeless tobacco products and wine both domestically and internationally. MO is probably best known for their Marlboro, Copenhagen, Skoal and Chateau Ste. Michelle brands.

Altria has a very long history of steadily increasing their dividend. They aim to distribute 80 percent of their adjusted earnings per share back to its shareholders. Accordingly, the Board of Directors has just approved another quarterly dividend increase. They are increasing their dividend from $0.48 to $0.52 for each common share. The Ex-Dividend Date is scheduled for 9/11/2014 and the potential payment date will be 10/10/2014.

Altria has been paying shareholders a dividend since 1970. Adjusting for stocks splits the dividend was less than a penny a share then. With this increase, Altria Group will be paying shareholders approximately $2.08 a share on an annual basis. The stock closed today at $42.58 and with today’s dividend announcement the dividend yield is almost 4.9%. MO is very close to its 52 week high of $43.70.

Altria group has done very well despite the trend of declining cigarette sales due to the decrease in smoking rates of US adults and increase in taxes mandated by governments on their products. To combat this, they are moving into the e-cigarette market.

Despite the risks, I’ll continue to own the shares as long as MO continues to pay the dividend. I would also like to increase my shares so I own an even lot, however, I’ll wait for a pull-back in the stock price to do so. I’ve owned MO since 2005 and I’m very pleased with the meager income I’ve received over the years.


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