Altria Vs. Philip Morris: Which Is The More Attractive Dividend Income Stock?

Dec. 08, 2022 11:10 PM ETAltria Group, Inc. (MO), PM65 Comments
Frederik Mueller profile picture
Frederik Mueller
1.31K Followers

Summary

  • In this comparative analysis, I will analyze which of the two tobacco product manufacturers - Altria Vs. Philip Morris- I consider to be the more attractive dividend income stock.
  • At this moment, Altria shows a higher Dividend Yield (7.97% as compared to 4.91% of Philip Morris) and a slightly lower Payout Ratio (76.63% compared to 84.80%).
  • I will also explain why I consider the risk to be slightly lower for one of the two companies.

Package of Marlboro Red Label Filter Cigarettes

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Investment Thesis

Dividend income stocks provide an excellent opportunity for investors to generate an additional income when investing on a long-term basis. In today’s comparative analysis, I will analyze which of the tobacco product manufacturers Altria (NYSE:

Altria's and PM's Dividend

Source: Seeking Alpha

Projection of Altria's Yield on Cost

Source: The Author

Projection of PM's Yield on Cost

Source: The Author

HQC Scorecard

Source: The Author

Altria and PM according to the HQC Scorecard

Source: The Author

Factor Grades

Source: Seeking Alpha

Quant Ranking

Source: Seeking Alpha

Dividend Grades

Source: The Author

Risk Factors

Source: Seeking Alpha

This article was written by

Frederik Mueller profile picture
1.31K Followers
In my analyses, I aim to identify companies that have strong competitive advantages over their competitors (for example, a strong brand image, cost advantages, special know how, strong pricing power, a strong distribution network, etc.) in order to support you to find excellent long-term investments. I aspire to help you build an investment portfolio consisting of high-quality companies that are particularly attractive in terms of risk and reward (for example, due to their wide economic moat, high financial strength, high profitability, attractive valuation, growth potential and expected return). I was born in Germany and majored in Business Administration at the University of Mannheim (Germany) and San Diego State University (United States).

Disclosure: I/we have a beneficial long position in the shares of MO, PM 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.

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