Is Altria Stock a Buy?
Altria (NYSE: MO), the largest tobacco company in America, was once considered a sound investment for conservative income investors. But over the past five years, Altria's stock has declined nearly 30% and erased all its dividend gains. Let's look back at why Altria lost its momentum, and whether or not value-seeking investors should bet on a long-term recovery for this company.
Altria, formerly known as Philip Morris, became a fully domestic company after spinning off its international division as Philip Morris International (NYSE: PM) in 2008. Adult smoking rates in America fell from 20.9% to 13.4% between 2005 and 2018, according to the Centers for Disease Control and Prevention, making it increasingly difficult for Altria to sell its top cigarette brands like Marlboro. Rising excise taxes on cigarettes in states across America exacerbated that pain.
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Source Fool.com
