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3 Reasons This 7.4% Yielding Blue-Chip Is A Screaming Buy | The Mesh Report

3 Reasons This 7.4% Yielding Blue-Chip Is A Screaming Buy

Dividend Sensei January 25, 2019 Comments Off on 3 Reasons This 7.4% Yielding Blue-Chip Is A Screaming Buy

Here are 3 reasons this 7.4% yielding blue-chip is likely one of the best investments you can make over the coming decade.

Summary

  • Altria has been one of the best-performing stocks of the last 50 years, but has spent 19 months in a severe bear market.
  • Mounting regulatory risks and now two large and controversial acquisitions have beaten the stock down to the lowest price in four years.
  • The yield of 7.1% is now the highest since the financial crisis, potentially making it the best time in 10 years to buy this high-yield dividend aristocrat.
  • Despite the giant debt taken on to acquire Juul and Cronos, the dividend remains safe and management is reiterating its long-term growth guidance of 7% to 9%.
  • I continue to believe Altria will succeed in adapting to challenging conditions and so increased my stake in the company by 33% at under $45. But due to higher risks, I’m keeping my position small, just in case “this time is different.”

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