Altria Group delivered its 51st consecutive annual dividend increase with its recent 2.4% increase in its quarterly dividend from $0.84/share to $0.86/share.
Altria Group has posted an impressive 8.5% YoY growth in its adjusted diluted EPS through the first half of 2020, and the company maintains a reasonably strong balance sheet.
Bolstering the case for an investment in Altria Group, I estimate shares of the stock are trading at a 26% discount to fair value.
Between its 8.2% yield, 4-5% annual earnings growth potential, and 3.1% annual valuation multiple expansion potential, shares of Altria Group are positioned to exceed my 10% annual total return requirement.
With dozens of members of the S&P 500 having cut their dividends in 2020 year to date, predominantly due to the economic disruptions of COVID-19, it is of utmost importance to dividend growth investors to