MO is still very undervalued at $91Bn ($49.42) as they should be making about $8.5Bn/yr.
| Year End 31st Dec | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | TTM | 2021E | 2022E | CAGR / Avg |
|---|---|---|---|---|---|---|---|---|---|---|
|
$m
|
25,434 | 25,744 | 25,576 | 25,364 | 25,110 | 26,153 | 25,830 | 21,239 | 21,637 | 0.559% |
|
$m
|
8,138 | 21,780 | 10,029 | 9,082 | 255 | 8,133 | 8,046 | -0.012% | ||
|
$m
|
5,241 | 14,239 | 10,222 | 6,963 | -1,293 | 4,467 | 4,339 | 8,495 | 8,809 | -3.15% |
|
$
|
2.67 | 7.28 | 3.56 | 3.78 | -0.651 | 2.41 | 2.34 | -2.00% | ||
|
$
|
2.84 | 3.02 | 3.46 | 4.08 | 2.98 | 3.71 | 3.71 | 4.60 | 4.84 | 5.51% |
|
%
|
+9.65 | +6.40 | +14.6 | +18.1 | -27.1 | +24.6 | +13.9 | +24.1 | +5.22 | |
|
x
|
13.3 | 13.3 | 10.7 | 10.2 | ||||||
|
|
0.551 | 0.550 | 2.05 | 1.72 | ||||||
The issues they had with Juul are fading away and Federally legal marijuana can send this company flying:
Altria likely to see only upside as Juul trial with FTC set to start this week, analyst says
Bill to legalize marijuana on federal level introduced in House
In the Dividend Portfolio, we have the following MO trade:
| MO | Altria Group Inc. | 500 | 11/8/2019 | 571 | $23,100 | $46.20 | $3.15 | $41.10 | $49.36 | $0.14 | $1,578 | 6.8% | $24,678 | ||
| MO Short Call | 2022 21-JAN 47.50 CALL [MO @ $49.36 $0.14] | -5 | 11/8/2019 | (234) | $-2,850 | $5.70 | $-2.00 | $3.70 | $0.03 | $1,000 | 35.1% | $-1,850 | |||
| MO Short Put | 2022 21-JAN 40.00 PUT [MO @ $49.36 $0.14] | -5 | 11/8/2019 | (234) | $-3,000 | $6.00 | $-4.80 | $1.20 | $0.02 | $2,400 | 80.0% | $-600 |
MO pays out $3.44 in dividends, which is a whopping 7% and, at the current net $44.46 on our spread, that's 7.7% annually and, if we get called away at $47.50 in 2022, that's another $3 in profit - about 6% more.
