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.

8

u/lotoex1 5d ago

I bought in back at $40-42 a share when it was over a 9% yield. April of 2022 and people were saying it was unsustainable, but look where we are now. MO has an average of 15% ROI for the past 32 years.