Why Altria Is Poised to Bounce Back
With that in mind, let's take a closer look at Altria and see what CAPS investors are saying about the stock right now.
Richmond, Va. (1919)
Chairman/CEO Martin Barrington
President/COO David Beran
Return on Capital (average, past 3 years)
$3.8 billion/$13.9 billion
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the8,968 members who have rated Altria believe the stock will outperform the S&P 500 going forward.
- Incredibly strong brand. Marlboro has been around since the 1920's and is the best selling cigarette brand in the world.
-Stickiness. Even though cigarettes are commodities, consumers are extremely brand loyal and almost always buy the same type.
-Pricing Power. Even though Altria is restricted to the US (Philip Morris International has the international rights) where cigarette volumes have been in constant decline, they still manage to raise revenues every year. How: pricing power. ...
Altria pays a 5% dividend, has strong brand and pricing power, and is largely immune to technological disruption. All of these advantages help explain why it has been THE BEST performing stock of the past fifty years.
Altria has been the best-performing stock of the past 50 years, but as the number of smokers in the U.S. continues to steadily decline, is Altria still a buy today? To find out whether everyone's love-to-hate dividend stock is a savvy investment choice or a hazard to your portfolio, simply click here now for access to The Motley Fool's premium research report on the company.
The article Why Altria Is Poised to Bounce Back originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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