I am looking to invest in dividend companies. Anyone have any thoughts on which may be a better investment down the line? Currently I like MO's higher dividend. Should I just stick with MO or add in a little PM along the way?
This is money I do not plan on using for the next 30 years, hopefully. I have started investing in high dividend paying companies that I feel will be around 30 years from now. This is a buy and hold investment that I do not intend on actively trading.
this is such a dumb question i doubt its legit; the 2 companies could not be much different; that being said, i'll jump in; for a pure money play, i don't see how anyone beats pm, from a speculation play (ie weakening dollar play), from a value play or from a divy play; i also own mo but not nearly as high on it, the libs and lawyers will pursue and crack it eventually; then we'll all "wonder" (and by wonder i mean the brain dead MSM) where all the tobacco ie farming jobs in this country went; sometimes i really hate this country and its hard for me to say that; peace, good weekend; time to have a cocktail and pretend everything if going to be fine;
Check out UVV. Like PM, great dividend (in excess of 5% and raises the dividend every year)
and sells tobacco leaves in over 30 countries.
It presently sells at a low multiple and is priced right for a lot of further appreciation.
Good luck....p.s. company is based out of Richmond, Virginia....
PM, hands down.
Altria is shoveling against the tide domestically -- approximately 5% per annum volume declines as far as the eye can see. Smokeless offerings may offset some of the lost revenues and lost margin associated with the perpetual decline in cigarette volume, but even smokeless will likely moderate in time.
PM Intl. is demonstrating organic growth, which is the Holy Grail for consumer product companies. In addition, once the dollar becomes set in its declining ways, the one hundered percent, foreign-derived revenue stream will increase by a geometric proportion. Nice to add some PM if it dips below $40 again, but what with the currently weakinging dollar, a three-handle may not be in the offing any time soon.
I think the answer would depend on what other stocks you have and the type of US vs. International exposure you have/want. PM fits my portfolio better because it offers growth, solid dividend (although not as high as MO) and international only exposure. I personally think the long term potential of PM is much better than MO due to the growth aspect the stock offers.
I owned MO for several years. I did well. When they spun off Kraft I sold it. When they split I took PM rather than MO. No US lawsuits, and the growth in tobacco is overseas.
Chineses love the Marlboro man. Phillipines, Indonesia, not to mention India, and on and on. Think about population, and not all the taxes in the U.S.
Do your due diligence. Hang onto MO for a small difference in Div. rate, or go for the winner. Think about where in the world tobacco will grow. At least for awhile. How long?
Wouldn't we all love to know that!