Altria: Smoking Dividend, Stubby Growth

Altria Group (MO) consists of a number of entities, namely Philip Morris USA, U.S. Smokeless Tobacco Company, John Middleton, Ste. Michell Wine Estates, and Philip Morris Capital Corporation. The company also owns a 27.3% interest in the world's second-largest brewer, SAB Miller (SBMRY.PK). Altria has been transformed over the past five years, spinning off packaged foods maker Kraft (KFT) in 2007 and then Philip Morris International (PM), the international cigarette business, in 2008. On the other hand, the firm acquired UST, the largest domestic maker of smokeless tobacco, in 2009, and John Middleton, which sells machine-made cigar brand Black & Mild, in 2007.Today, Altria is largely leveraged to the domestic U.S. market for cigarettes. Fortunately, this is a market the firm absolutely dominates, with about 50% market share. Marlboro is by far the best selling brand in the U.S., accounting for about 42% of all packs of cigarettes sold. Other well-known brands include Virginia Slims and Parliament.... Read more

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