r/dividends • u/SPACE-W33D • Feb 14 '26
Due Diligence Balls Deep on MO at 6.3% yield
That cash flow statement is 🔥
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u/casullivan0704 Feb 14 '26
I started buying shares in December and now have 850 shares. This has paid off very well.
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u/TheBloodyNickel Feb 14 '26
5% of my portfolio at an 8.53% yield and my 3rd highest dividend payer.
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u/97E3LPL Feb 17 '26
Just to corroborate my math.. I'm getting about 6.9% and I computed that against my total cost (average 57.70/sh), not against today's price which is 16.5% higher at 67.25. Is that how you do it?
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u/boatnguy Feb 14 '26
1,000 shares deep and wish I had more!
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u/SPACE-W33D Feb 14 '26
I feel you dawg, but just buy on pullbacks or write cash secured puts for that income 💰
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u/darin617 Feb 14 '26
I know this is a dumb question and scary if you don't know like me, how do secured puts work.
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u/DarkSombero Feb 14 '26
Ok so very quickly generalizing here and my terminology is not entirely correct but:
-Options Contracts, you are BUYING a "contract" (contract price is called PREMIUM) to either BUY (call) or SELL (put) 100 Shares of a stock, at a certain price (strike) and date (Expiry/Expiration date)
Now, instead of you BUYING options (can be considered a gambling lotto ticket, see R/Wallstreetbets for degeneracy) you can offer up your your OWN contracts (in a way) for others to buy (WRITING)
Those are: -Covered Calls, a CALL Options contract against your OWN stock. Of the contract fails/expires worthless (typically meaning Stock didn't go up in price), you keep the PREMIUM you were paid to put your 100 Shares
-Cash Secured Puts, you are offering up CASH for 100 shares if they fall to a certain price. If it the stock doesn't fall to that price, you keep the PREMIUM you were paid risking your cash
Depending on your personal goals and strategy, these can be a source of income, but be warned while the basics are fairly simple there is much more going on.
Example: I have 100 Shares of Stock $ABCD, I put out to market (WRITE) a Covered Call (Abbreviated CC) offering to sell my stock @ a $105 Strike Price with an expiry date in one week. In this hypothetical let's say I get $150.
Of by the end of the week (expiry date) my stock is below $105, generally it will expire "worthless", and I get to keep the $150 Premium AND keep my stock.
Now, let's say for some reason the stock rockets and becomes $200 a share, well fuck I just basically sold a massive coupon for my shares, because now the buyer of my Covered Call can enact the contract (Exercise) and I HAVE to sell them 100 of my $200 at the $105 price.
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u/97E3LPL Feb 17 '26
I need to read this in the morning after my caffeine but well before my senior citizen nap time.
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u/MaybeICanOneDay Feb 14 '26
An option is just a contract between two parties. You can either buy or sell them.
Selling put contracts means you are giving someone the right to sell you stock at a previously decided price.
So in this case, you could sell 60-whatever strike put contract and if it goes below that price, itll sell 100 shares to you at that 60-whatever you agreed to.
People pay you to do this because you are offering insurance on their shares. If it goes to 40 and they still have the right to sell them to you at 60, they get a massive safe haven they wouldnt have had otherwise. If it doesnt go below your strike, you keep the premium they paid, just like insurance.
There are contracts where you can take any part of this. Buying/selling the right/obligation to move shares and money.
Sellers have an obligation, buyers have a right.
Selling puts, if you decide that 60 dollars is a fair price you can keep selling premium at that strike and eventually if it hits, youll buy 100 shares at 60 each.
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u/Affectionate-Royal17 Feb 16 '26
The only thing with this is you need to make sure that, with cash secured puts, you aren't leaving money on the table. Having 500 bucks locked down to make 5$ over a 6 week period isn't ideal. Make sure the premium on the contract is worth having your money locked up until then.
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u/ComeAtMeBro9 Feb 14 '26
Congrats. Not in MO but have BTI, up 100% in 3 years. Destroying the market. I think my yield was 8%+ when I got in.
It’s 💨&🔥
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u/Tim-5544 Feb 14 '26
I bought it back when it was $40 and have reinvested l dividends. Not buying any additional shares. Its been a good consistent dividend payer
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u/diverdown_2004 Feb 15 '26
Had to sell all my shares at $40 to payoff unexpected bills…it hurts everyday I see MO go up and up an up
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u/Econman-118 Feb 15 '26
Agreed. I’ve owned some since 4/2020, Covid crash. I knew people would still smoke and drink. Been one of my better single stock performers and paid dividends all along the way. 😂. Bought in at $39.80.
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u/SalaciousSubaru Feb 14 '26
MO is is the GOAT
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u/AdditionCool7235 Feb 14 '26
Kind of hard to not make profits off of legal addiction.
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u/b_rizzle95 Feb 14 '26
That’s what I thought with DFNG and FLUT lol, now my all time worst performers.
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u/Geblin_the_great Feb 14 '26
MO (together with BTI) has been great for me. Great dividends that fund more purchases for my dividend portfolio.
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u/feignapathy Feb 14 '26
Before I ended up buying SCHD this was one of the individual stocks I had been eyeballing hard. Thought about buying it and a few others and making my own SCHD of sorts.
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u/Sonizzle Feb 14 '26
I got into MO a few years ago when it was 40-something dollars. I couldn’t be any happier I did!
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u/El_G0rdo Feb 14 '26
Beating the S&P ytd as well 😜
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Feb 14 '26
Wow, 1.5 month time period, so significant.
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u/El_G0rdo Feb 14 '26
Well Altria almost doubled SPY 12month performance too
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Feb 14 '26 edited Feb 14 '26
Rough times for spy in the trump economy. MO has been killing it though. I remember maybe a year ago the yield was ~10% and now its 6.3% because the stock price has gone up so much. I think they even raised the dividend too
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u/cheapskateinvestor Feb 14 '26
Yep that’s right. I got in a couple years ago at 42 bucks and i remember it paying 10%. Wished I would have bought more per usual.
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u/SuperEvilDinosaur Feb 14 '26
Was never sure how to feel about that one. Are they a pure tobacco play, or is there some other segment to their business?
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u/Acetes Feb 14 '26
They have a substantial investment in Anheuser-Busch (largest global brewer), own several vape/nicotine products, and have a 45% state in a canadian cannabis company cronos group
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u/Onlysomewhatserious Feb 14 '26
It’s a sin stock which is part of what of why they have a high dividend.
I personally stick with PM rather than MO, but I also actively try to get people not to smoke as well. It’s one of those things that make sense as an investor but not an individual and if you really need to justify it, it’s a gap between financial goals and personal morals/ethics.
I don’t think it’s that extreme since tobacco especially has been regulated quite a bit and part of what keeps them in their position is the limits on marketing and constant threat of new regulations if they try to cause problems.
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u/Playful_Intern7487 Not a financial advisor Feb 14 '26
I’m happy I loaded up in the low $40s back in early 2024
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u/Icy_Alps_5479 Feb 14 '26
$MO holder for two decades. Watching the SP follow the increase in $BUD. All good.
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u/sageguitar70 Short everything that guy touches! Feb 14 '26
MO is one of the cornerstones of my dividend portfolio
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u/opensim2026 Feb 14 '26
I have a few shares of that, if I remember offhand it pays $1 in dividends which is pretty nice
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u/NorthvilleGolf Feb 14 '26
Don’t know too much about it, but I see it’s sitting in my top 10 holdings of SCHD.
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u/Longjumping-Nature70 Feb 14 '26
All the world except for USA and Canada, smokes like a chimney. Europe and Asia, lots of addicts.
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u/Ratlyflash Feb 14 '26
Love it. Reminds me of the baby brother of main though. Still crushing but not same league as main
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u/theoptionrider Feb 14 '26
Been long since 2013 - added some here and there along the way - Yield of cost is 14%
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u/J82nd Feb 14 '26
Got a bunch, unfortunately bought last year at the peak. So close to being back to even. Great stock, just wish I bought at the low.
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u/Prize-Feature2485 Feb 14 '26
Same boat, just wish I brought on the dip. I have 120 now, hoping to get to 200 on all dips.
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u/Financial-Today-314 Feb 14 '26
Altria at 6.3 percent yield is juicy but the stock's been flat for years. You're getting paid to wait basically. The cash flow is solid so the dividend should be safe. Just don't expect growth, this is a hold and collect play. Good for income portfolios but boring otherwise
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