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Altria's Future Growth Will Mean Investors Are Rewarded

I remain bullish on Altria Group (MO); the company has been taking the correct measures to fight back the decline in cigarette volumes caused by increasing healthy concerns. MO has increased its focus on expanding its product portfolio beyond the smokeable range towards the rapidly growing e-cigarette category, which will grow its sales base in 2015. Moreover, the benefits of a healthy sales base combined with effective cost savings, ongoing pricing increases and aggressive share buybacks, will accelerate MO's earnings growth momentum in the years ahead. Also, the company will continue to improve its cash flow productivity to make healthy dividend payments and actively pursue its share repurchase activity.

Setting for Future Growth

In the last few years, amid increasing healthcare concerns and global anti-tobacco campaigns, the percentage of U.S. adults who smoked dropped from 20.9% in 2005 to 17.8% in 2013, which have adversely affected the Tobacco Industry's sales… Read More …