Enterprising Investor Forum

For investors looking for stability in this current economic climate and a ‘nice’ 4,1% dividend yield, Altria (MO) seems to be an excellent opportunity.

Altria is the leading manufacturer of cigarettes, and other tobacco products, dominating global markets with:

• 50% market share in the United States
• 60% in Latin America
• 40% in Western Europe, and
• 25% in Japan

Just to put things into perspective, Marlboro generates more sales volume than the next 10 biggest brands in the US and current projections for the growth of world-wide cigarette consumption are for between 1 and 3% annually for the next two decades or so.

Furthermore, having finalized the spin-off of Kraft (KFT), management is concentrating on Philip Morris International which many feel will prove to be a real catalyst for growth. We believe that it would be quite reasonable for investors to target a share price appreciation of between 15 and 20% in the next 24 months whilst enjoying the dividend yield.

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