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My Best Comments On MO Edited

|About: Philip Morris International Inc. (PM), Includes: MO
Summary

Keep your vision on MO's Dividend not price.

Buy & Hold MO.

Keep adding shares Of MO when large price declines occur like what has currently happened to MO's share price, take responsibility for your investments, due your own due diligence.

I would like to see MO close above $46.64, that would be 10% above the current bottom of $42.40. I believe that would increase the probability that a bottom has been established, however its impossible to know what the bottom is price wise. We might have thought that MO bottomed in 2014 or 2015 price wise, yet the current bottom of $42.40 is lower now than many price points in 2014 or 2015, that goes back almost 5 years!!!

***That's why the MO dividend is the key to its value!!! Regardless if you reinvest it or not, If you do not reinvest it you get the CASH to save it, spend it, or invest it in something else, or invest it in MO at a later date!!! {I added this for Buyandhold 2012}!!!

Additionally, If you hold MO for decades as Buyandhold 2012 has done, the PRICE alone will add lots of returns to your money, meaning that your total invested dollar amount will be worth a lot more than the money you used to buy shares!!!

****Disregard MO's price as it has huge swings. Just look at a 30 year chart and you will see what I am talking about!

Then look at MO's dividend growth and you will see the value and the dividend gem MO is!!!

PS: Do not get fooled by MO's dividend in 2007 (Kraft spinoff), 2008 (PM spin off) which skews the dividend payments, as one needs to figure out how to account for the PM shares attained from the spinoff, not to mention all the shares attained from the Kraft Heinz spinoff and others and splits, its a complicated calculation!!! I did my own back of the envelope calculation and I think MO which was formerly Phillip Morris(PM) has doubled its dividend about every 6 years on average over the last 90 years, that works out to a dividend growth rate on average of 12% annually!

I would love to see Trapping Value or anyone else do a bonafide calculation of how many years on average it took MO, formerly PM shareholders to double their dividend income with no reinvestment or no added shares, purely fromĀ  dividend growth only, adding up the dividends from all spinoffs and accounting for all splits!!!

OK, maybe this would be a waste of his time or maybe not, that is up to him/her. Many would exclaim so what it is the past and has no bearing on future dividend performance/growth!

So, I will update my followers via my blog and comments of my actual dividend growth and income growth as the years pass!

Jan 29, 2019. 04:01 PMLink

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Hi Buyandhold 2012,

Wondering if you cared to weigh in on my observations regarding MO?

Total dividends paid in 1989 0.42

Total dividends paid in 1990 0.52

Total dividends paid in 1991 0.64

Total dividends paid in 1992 0.78

Total dividends paid in 1993 0.87

Total dividends paid in 1994 1.01

Total dividends paid in 1995 1.22

Total dividends paid in 1996 1.47

Total dividends paid in 1997 1.60

Total dividends paid in 1998 1.68

Total dividends paid in 1999 1.84

Total dividends paid in 2000 2.02

Total dividends paid in 2001 2.22

Total dividends paid in 2002 2.44

Total dividends paid in 2003 2.64

Total dividends paid in 2004 2.82

Total dividends paid in 2005 3.06

Total dividends paid in 2006 3.32

Total dividends paid in 2007 3.05

Total dividends paid in 2008 1.68

Total dividends paid in 2009 1.32

Total dividends paid in 2010 1.46

Total dividends paid in 2011 1.58

Total dividends paid in 2012 1.70

Total dividends paid in 2013 1.84

Total dividends paid in 2014 2.00

Total dividends paid in 2015 2.17

Total dividends paid in 2016 2.35

Total dividends paid in 2017 2.54

Total dividends paid in 2018 3.00

There is the dividend history from MO's websiteinvestor.altria.com/...

OK. So the history is skewed in 2007 (Kraft spinoff), 2008 (PM spinoff) which affected 2008 and 2009 to be lower and does not account for the dividends received from Kraft and Phillip Morris International!!! And who knows what else I am missing?

Looking at the dividend history, you can see that the dividend doubles from 1989 to 1993, and using the 1989 dividend of $0.42 it doubles again by 1998 to $1.68 (that is 2 doubles in 9 years) and then it almost doubles again by 2006 (8 years later) when it hits $3.32, so that is almost 3 doubles in 17 years, which is a double on average every 5.7 years, WOW!!!

2007-2009 are skewed again due to the spinoffs.

From 2010 the dividend paid was $1.46 and it took 8 years to more than double in 2018 as $3 was paid. You can use 2009's divided of $1.32 and say it took a little more than 8 years to double in 2017 approximately!

Jan 29, 2019. 03:42 PMLink

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sbally4,

Thanks.

I have looked at a 30 year chart on MO and it has some really tough times price wise but the dividend keeps rising through thick and thin!

From 11/1998 - 2/2000 the price peaked at $18.35 and dropped to $5.76, that is a 68.6% drop and MO raised their dividend 5% in 1998 and they raised their dividend 9.5% in 1999, and they raised it 9.8% in 2000, and they raised it 9.9% in 2001, and they raised it 9.9% in 2002, and they raised it 8.2% in 2003, and they raised it 6.8% in 2004, and they raised it 8.5% in 2005, and they raised it 8.5% in 2006!!!

I am looking at the dividend payment in each year and its annual growth. investor.altria.com/...

1997 -MO paid $1.60

1998 - MO paid $1.68

1999 - MO paid $1.84

2000 -MO paid $2.02

2001- MO paid $2.22

2002 - MO paid $2.44

2003 - MO paid $2.64

2004 - MO paid $2.82

2005 - MO paid $3.06

2006 - MO paid $3.32

From 5/2002 - 4/2003 MO's price peaked at $17.73 and dropped to $6.57, that is a 63% drop!!!

So, as anyone can see MO's price was a disaster from 11/1998 to 4/2003, ALMOST 5 years, and yet the DIVIDEND kept right on going higher at a fantastic pace!!!

So in 9 years from 1997 -2006 MO's Dividend MORE than DOUBLED from $1.60 to $3.32!!!

All we need to do is relax as the price goes through very big draw downs and the Dividend keeps doubling if one is a long term investor!!!

Jan 29, 2019. 12:49 AMLink

Disclosure: I am/we are long MO.