Altria (MO) has languished this year as industry volumes have tanked and it hasn’t been immune by any stretch. However, profitability continues to improve as higher prices are pushed through its channels and as a result, the dividend continues to see sizable raises. This combination of improving profitability during a challenging time as well as the yield and valuation of the stock – both of which I find to be quite attractive – means that I became bullish on Altria in the recent past. The company’s Q3 report wasn’t quite as good as I had hoped but low expectations from investors coming in made it good enough. And now that guidance has been reiterated, I’m reiterating my bullish tilt on the stock.
