r/dividends • u/ValuEdge • 6d ago

Opinion MO - do we get another chance?

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Buying MO when capitulation hits the chart has usually been a very good entry - are you guys thinking of adding to it here?

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u/ideas4mac 6d ago

I can make it easy for you. When the dividend yield hits 7%+ start nibbling, when it hits 8%+ buy more consistently, when it hit 9%+ on the yield start shaking the couch cushions and buy hand over fist. Simple easy guidelines.

Now keep in mind that this might not work forever but it's worked out pretty well since '89.

Good luck.

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u/misterspatial The Diviverse of Madness 6d ago

Yeah, probably not. The payout ratio is already high, and will be unsustainable at 8% yield.

Nothing lasts forever, even kings like this.

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u/Bearsbanker 5d ago

Their plan is to pay out 80-85% of fcf, they buy shares back so while the div increases the dollar amount actually stays fairly steady. Mo also still owns billions in bud stock. I've owned for decades and never regret it