If you divide the net profit by the revenues you see that MO is more profitable than PM. In the latest annual report which was sent out last week MO annual revenues for 2012 were $24.653Billions.
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Can the word "Risk" be applied to MO? This company has the competitive edge over its competitors in smokeable and smokeless tobacco. Tobacco is a legal product, MO is highly profitable, has high profit margin (>40%), is diversified, has large amount of cash, tobacco has been placed under the supervision of the FDA, our president, some congressmen, senators, supreme court judges smoke and own MO shares. I do not thing the e-cigarette will fly high, most people I know who tried it complaint that it does not taste as good as cigarettes especially with beer and coffee and went back to smoke cigarettes. The same thing happened to "Nicorette?". The best strategy is to increase the research for less harmful cigarettes.
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Thank you, I am doing very well. I posted this question because in two days we will receive MO dividends of $46000 and I am not sure if I should reinvest this money in MO or somewhere else. This weekend Barron's magazine had an article about CLF with a price of $40 in the coming year. This is somehow risky. So I will definetly searchKMR. I believe that MO will spin-off its SABMiller Beer shares to its shareholder once its long term debt comes. The debt right now is 13.88B, this year it will drop to $12.3, in 2014 to 11.7, in 2015 to 10.7 and by 2019 down to $7B. This information is from MO annual report which I received last week. MO holds 26.9% of SABMiller Beer shares which is close to 413million shares. Per TDAmeritrade SABMiller pays $1.04/share.
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There has been many useful and good comments about MO. Can anybody recommend a better investment than MO which offers safety, increasing dividends, high profit margin, slow and steady appreciation and a share buyback program. I am looking at (T) and (RSD-A). I did not move in any of them yet because I believe that one day MO will spin-off its stake in SABMiller Beer to its shareholders and if this happens I will receive more than 25000 shares of SMBRF. The former chairman of MO once said that the SABMiller investment is not a core business.
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MO share in SABMiller Beer is close to 24Billion. SABMiller has 1.59Billion shares and MO share is either 28.3 or 28.7%. SABMiller share price is around $54 and it pays $1.04/share. No mention that MO has over $3.0Billion in cash. Most of the debt was for buying UST in 2009. Why debt is an issue if a company can handle it very easily? Having $3.0Billion in cash after paying taxes, the Master Settlement Agreement annual payment of around $3.0Billion, interest on the debt, dividends to its shareholders, salaries, material etc. shows how profitable MO is. Per an article in Barron's published few years ago the author claimed that MO is the most profitable company in America.
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I have done the same in 1997 immediately after the lawsuits started and MO share price dropped from 50 to 20. But I put all my money in MO. When the market crashed in March 2009 and MO shares dropped to less than 15, I bought another 30000 shares of MO at prices between $14.75 to $17. MO will fly again if or when the company spinns off its stake in SABMiller Beer to its shareholders. If this happen MO share price will drop but I will be getting over 25000 shares of SABMiller. Another point to the claims that MO cannot continue to increase its dividends just look at the cash it sits on, it is over $3Billion and this is after paying dividends, interest on its debt and its share of the Master Settlement annual payments to the states. I have no proof but I believe that MO will grow its alcohol business.
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I am posting from the US. Today I spent hours at the public library trying to find stocks that are as profitable and increase their dividends as MO. I could not find any company that matches MO. I looked at all oil major companies and at utilities and drugs. Many pay dividends, but they do not increase them every year but every 3 or 4 years like RDS-A and they do not increase them by much. In other cases, such as PFE, they cut the dividends. So I decided to stay and stick and increase my holding in MO.
Maximizing Income: High Dividend Vs. High Dividend Growth [View article]
Keep increasing your holding in MO for higher and continously increasing dividends and use your MO shares as buying power to sell options in very stable companies such as oil, oil services, defense, big retail, food, beverage, alcohol. Doing so you increase your wealth, have the peace of mind and above all you know by how much you increase your net worth. With stocks you never know this and have the potential of loosing or reduced dividends or zero appreciation. Steel stocks slum for 6 to 7 years then flourish big, they always come back.
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I wonder where PM stock would be without the share buyback program. In 2008 PM was born with 2.25Billion shares today it has less than 1.6Billion. PM is not introducing MO products to the outside world, it is managing this existing and mature business which already exists for the past 50 to 100 years. Since its spinn-off PM has been selling annually between 880 billion to 920Billion cigarettes. MO has been selling 132Billion to 136Billion cigarettes in the US. PM sells only cigarettes, MO sells cigarettes, smokeles, alcohol, cigars, pipes, financial etc. MO is more profitable when you divide the net profit by the total revenues.
Maximizing Income: High Dividend Vs. High Dividend Growth [View article]
Is WAG a high growth stock? I have been following it for the past 10 years and until recently it has been trading between 28 and 34. Follow Warren Buffet recommendations: "Buy shares in companies that have COMPETITIVE EDGE" such as KO where Buffet owns 400 million shares. With its Marlboro, Skogal and Copenhagen brands MO has the competitive edge in the tobacco industry. High dividends and low P/E means high profits. MO P/E is much lower than that of WAG.
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Smoking is one way to reduce anger, stress and brings enjoyment. If anger and stress are bad for your health then you can say that smoking has some benefits to your health. I am puzzled, why this issue, smoking, is continuously debated only in the US. Western Europe also has level of civilization but this topic is not discussed there.
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Which is more dangerous secondhand smoking or farting? Should farting be forbiden in public places. 30% to 40% of all adults in every country which amounts to 1.5billion to 2.0billion of the world population smoke but we do not hear about lung cancer epidemic. In addition 20% of all lung cancer patients have never smoked. The point here is that the tobacco industry is intentionally being targeted by certain groups for certain reasons.
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What about this? Is there a study showing that tobacco smokers are less likely to have the flu than non-smokers? Most smokers I see on cold days are walking around with light clothes and non-smokers with heavy coats.
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Altria Group Has Huge Fair Value, Solid Dividends And A Favorable Trend [View article]
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The Special Dilemma For Altria Stockholders [View article]
Maximizing Income: High Dividend Vs. High Dividend Growth [View article]
Maximizing Income: High Dividend Vs. High Dividend Growth [View article]
The Special Dilemma For Altria Stockholders [View article]
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