Altria Vs. Philip Morris: The Better Buy Might Surprise You

Summary

• With the market crashing blue-chip bargains are raining from the sky, and investors have to be selective with what they buy.
• MO and PM are defensive, low volatility dividend kings and both are up about 14% this year.
• However, 23% of PM's IQOS sales are from Russia and Ukraine, and the war has caused PM's long-term growth consensus to fall by 75% to just 3%.
• MO today yields a very safe 6.7% vs PM's 4.7%, is 21% undervalued, while PM is 4% overvalued after management slashed guidance by 13%.
• Over the next three years, five years, and 30 years, analysts think MO could deliver 3X the returns PM could generate. And you enjoy 75% higher yield from the best performing stock in history, with zero exposure to the war. I believe both companies have a bright future but for new money today MO is the superior high-yield dividend king opportunity.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of PM, MO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Dividend Kings owns both PM and MO in our portfolios.