Where Will Altria Be in 3 Years?
Altria (NYSE: MO) owns the Marlboro brand, which has a roughly 41% market share in North America. That's huge and highlights the company's dominance in this geographic region. But the downside here is that Altria is only operating in this single region. If history is any guide, Altria's cigarette business will continue to worsen over the next three years.
A few years back, Altria spun off Philip Morris International as a separate company. Altria retained its North American operations while Philip Morris International ended up with the business outside of North America. The end result was to create a business that was being operated as a cash cow (Altria) and one that had more opportunity for growth (Philip Morris International). In fairness, that's basically what investors got, noting that Altria' dividend yield is a lofty 7.5% while Philip Morris International's yield is a far more modest 4.3%.
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Source Fool.com
