Recent Stock Purchase September 2019

No shortage of wild financial headlines in September. Market volatility seems to be the norm these days and with precious metals, oil and even cryptocurrencies all swinging wildly the past few weeks it’s enough to drive you insane. Of course, being a long term dividend growth investor affords you some solace as we tend to look at our investments over longer time periods which smooths out all the daily ups and downs as well as financial noise we are constantly bombarded with. Consistency is another key feature of the dividend growth investor and if you have been following my blog for a while you know that I make consistent purchases month in and month out no matter what is going on in the world. With that being said, and sticking to my September stock considerations:

I have added to my taxable account 30 shares at $40.82 for a total investment of $1,224.60 in Altria Group, Inc. (MO). With this recent purchase my taxable account holdings in MO now totals 220 shares with a market value of $8,794.48. I also hold 38 shares of MO in my ROTH account with a market value of $1,519.21.

MO continues to struggle in the near term but for those willing to risk some capital it can potentially reward you with a yield that is well over 8% as well as capital appreciation. When you think about the long history tobacco companies have along with their ability to navigate all sorts of fundamental, regulatory and legal hurdles it becomes difficult to outline a case for their demise.

What do you think about my recent stock buy? Are you picking up some shares too or sitting on the sidelines? Does tobacco have a place in your portfolio or not? Please let me know below.

Disclosure: Long MO

14 thoughts on “Recent Stock Purchase September 2019

    • Hi JC,

      MO has been my go to stock for several months. Seeing it around $40 was too much for me to pass. As you already know, MO is a battle tested and hardened stock/company. Management knows how to navigate all the rough waters that lay ahead. I just look at it from a risk reward profile and around $40 it was a good time to nibble.

    • Hey DH
      I like your move, Altria is a high quality stock that has been under pressure and I guess it‘s gonna remain that way. A cash machine being undervalued with a huge economic moat. On top of that this stake in Anheuser Busch, the world largest beer producer.
      I own some stocks of British American Tobacco and Imperial Brands, reinvesting all the dividends in these beaten down stocks. And MO is certainly on my list.
      Cheers

      • Hi FS,

        MO has been taken down so hard that from a risk reward perspective you have to at least nibble on the stock. It has the cash generation and incredibly juicy yield so why not? 🙂

    • Hi DD,

      Sometimes a risk reward profile looks too enticing to pass up. MO is one of the most battle tested companies/stocks out there. With every headwind and zero tailwinds the stock continues to perform. Smoking rates decline, huge legal battles and settlements from the 90s, regulatory risks, ads restricted, you name it, the company continues to perform over the long term.

  1. I also bought some shares of MO. I entered the position this week at $39.53. It’s my first buy in the company but it makes up a large chunk of my portfolio (about 10% of the total). There’s definitely some regulatory risk but the potential reward looks like it’s worth the risk.

    • Hi DS,

      That’s fine. No question you are not alone. Many do not like to invest in sin stocks in general whether it’s tobacco, alcohol, gambling, etc. I just look at the numbers and nibbling at these levels seems too good to pass up.

    • Hi DR,

      Seems like many have jumped on the MO train in recent weeks as the stock got hammered. MO has been my go to stock for several months. Time to look elsewhere a bit this month 🙂

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