Introduction
Altria (MO) is a long cherished dividend stock and it is obvious why. The dividend yield stands at 3.8% while the company boasts a healthy and even impressive balance sheet. One glance at the cash flow statement and it is clear that this company does not have the slightest problem making dividend payments.
The recent slump comes on the back of an FDA press release. Many considered it to be a rare buying opportunity. As I wrote in my last – rather lengthy - article, I consider it as a fundamental change in the MO thesis. The MO thesis was quite simple “More MO, MO money.” It is a tongue-in-cheek saying that MO investors so amusingly use. One I agreed with before the FDA press release.
