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3 Reasons This 7.4% Yielding Blue-Chip Is A Screaming Buy

Posted On January 25, 2019 5:49 am
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Here are 3 reasons this 7.4% yielding blue-chip is likely one of the best investments you can make over the coming decade.

Summary

  • Altria has been one of the best-performing stocks of the last 50 years, but has spent 19 months in a severe bear market.
  • Mounting regulatory risks and now two large and controversial acquisitions have beaten the stock down to the lowest price in four years.
  • The yield of 7.1% is now the highest since the financial crisis, potentially making it the best time in 10 years to buy this high-yield dividend aristocrat.
  • Despite the giant debt taken on to acquire Juul and Cronos, the dividend remains safe and management is reiterating its long-term growth guidance of 7% to 9%.
  • I continue to believe Altria will succeed in adapting to challenging conditions and so increased my stake in the company by 33% at under $45. But due to higher risks, I’m keeping my position small, just in case “this time is different.”

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About author

Dividend Sensei
Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I currently write for both Seeking Alpha, Simply Safe Dividends, and DividendSensei.com My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams, and enrich their lives. With 22 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams. I'm currently on an epic quest to build a broadly diversified, high-quality, high-yield dividend growth portfolio that: 1. Pays a 5% yield 2. Offers 7% annual dividend growth 3. Pays dividends AT LEAST on a weekly, but preferably, daily basis

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