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Crucial Month for Marlboro Maker

Published on December 1st, 2014 00:00

It is a significant month for Altria and its investors. The company that produces the well know Marlboro, Parliament, L&M and other cigarette brands has presented stable outcomes this year, mostly due to these solid brands. On top of that, Altria owns a very varied business, with a wine business, and a share in brewing company which help to improve outcomes.

Altria's achievements this year permitted it to, once more, overpass a robust dividend boost to shareholders.  So, here's what Altria investors have to know this month.

Altria values its overall performance with altered earnings per share. This is different from traditional generally accepted accounting principles of earnings per share since it doesn't include such things as purchase impairments and acquisition costs. These are non-recurring things that are not likely to have a substantial effect on ongoing procedures.

On this basis, Altria's overall performance has been solid so far. Altria made 5% growth in adjusted earnings per share in the course of the first half. This is attributed mainly because of efficient cost settings, the advantages of share repurchase programs that decrease shares exceptional, and reliable growth in its major cigarette brands. In order to reveal these factors, management plans to have a 7%-9% growth in adjusted earnings per share for the whole year.

Owing to this achievement, Altria was capable to boost its quarterly dividend by 8% to investors of record as of September 15. Altria's new yearly dividend of $2.08 per share presents a sound 4.7% yield. The company possesses a great track record of boosting its payout with time. Actually, Altria has these days amplified its dividend 48 times in the past 45 years.
Moving forward, there are a lot of factors to believe Altria can reach its full-year profits outlook and go on to offer powerful dividend grows.

On top of that, Altria has the chance for organic development, too. Currently it is experimenting with e-cigarettes, which seems to be an interesting opportunity for the growth.
After triumphant test outcomes in two states, Altria is presenting its MarkTen electronic cigarette product country wide, and believes that its technology sets it apart from the competition. Altria has made substantial assets in this product category, and should understand considerable results if progress carries on as anticipated.