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Altria Group Declares Dividend of $0.61 per Share


Dec. 4 2020, Updated 10:42 a.m. ET

Price movement

Altria Group (MO) has a market cap of $128.8 billion. It fell by 0.36% to close at $65.92 per share on August 25, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.59%, -1.2%, and 15.3%, respectively, on the same day. MO is trading 1.1% below its 20-day moving average, 2.4% below its 50-day moving average, and 6.7% above its 200-day moving average.

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Related ETF and peers

The PowerShares High Yield Equity Dividend Achievers Portfolio ETF (PEY) invests 2.1% of its holdings in Altria Group. The ETF aims to track a yield-weighted index of US companies that have increased their annual dividend for at least ten consecutive years. The YTD price movement of PEY was 21.5% on August 25.

The market caps of Altria Group’s competitors are as follows:

  • Philip Morris International (PM) — $155.5 billion
  • British American Tobacco (BTI) — $117.2 billion
  • Reynolds American (RAI) — $72.0 billion

Altria declared dividend

Altria Group has declared a regular quarterly dividend of $0.61 per share, a rise of 8.0%, on its common stock. The dividend will be paid on October 11, 2016, to shareholders of record as of September 15, 2016.

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Performance of Altria Group in 2Q16

Altria Group reported 2Q16 net revenue of $6.5 billion, a fall of 1.5% from the net revenues of $6.6 billion in 2Q15. The net revenue from smokeable products fell by 3.3%, and net revenue from smokeless products and wine rose by 8.7% and 6.2%, respectively, between 2Q15 and 2Q16. The company’s gross profit margin and operating income rose by 5.0% and 9.1%, respectively. It reported a gain on the derivative financial instrument of $117.0 million in 2Q16.

Its net income and EPS (earnings per share) rose to $1.7 billion and $0.84, respectively, in 2Q16, compared with $1.4 billion and $0.74, respectively, in 2Q15. It reported adjusted EPS of $0.81 in 2Q16, a rise of 9.5% from 2Q15.

Altria’s cash and cash equivalents and inventories fell by 65.4% and 3.0%, respectively, between 4Q15 and 2Q16. Its debt-to-equity ratio fell to 4.1x in 2Q16, compared with 4.5x in 4Q15.

During 2Q16, the company repurchased 2.7 million shares worth of $173 million at an average price of $64.06. As of June 30, 2016, it has ~$624 million shares remaining under its current share repurchase program.


The company has reaffirmed the following projections for fiscal 2016:

  • adjusted EPS in the range of $3.01 to $3.07, which does not include the impact from the Anheuser-Busch InBev-SABMiller business combination
  • effective tax rate of ~35.3%

In the next part of this series, we’ll discuss Vista Outdoor (VSTO).


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