Altria (MO) is somewhat of a dividend darling. The business model as well as the continuously increasing dividend coupled with a decreasing share count offer satisfactory returns. There is one perceived problem: The continued regulatory and social pressure has made Altria’s business model less attractive - so much so that I have seen some declare that the tobacco industry is dead. At least, that is the bear case. While I do contend that the current trends are by no means encouraging, I argue that we must combine secular trends with management decision-making to create a more holistic view.

Put differently, the most important question is: “How is management combating these negative trends?”

READ FULL ARTICLE HERE