In June, Altria purchased NJOY Holdings, which makes electronic cigarettes and vaping products, for a $2.75 billion consideration. Altria also owns over 10% of Anheuser-Busch InBev, the world’s largest brewer, which some feel is worth more than $10 billion and may be a segment of the company that could be sold. Given the public relations issues the company has faced this year, it could very well be on the chopping board.
The company has increased its dividend for 52 consecutive years and just announced another increase effective October 10, when the dividend moves to $0.98 per share from $0.94.
Shareholders receive an 8.82% dividend. The Jefferies target price is $55, and Altria stock has a consensus target of $45.68. The shares closed on Wednesday at $44.75.
AT&T
This legacy telecommunications company has been going through a long restructuring, has sold off or merged underperforming assets and has lowered its dividend. AT&T Inc. (NYSE: T) provides telecommunications, media and technology services worldwide.
Its Communications segment offers wireless voice and data communications services and sells handsets, wireless data cards, wireless computing devices with carrying cases and hands-free devices through its own company-owned stores, agents and third-party retail stores.
AT&T also provides data, voice, security, cloud solutions, outsourcing and managed and professional services, as well as customer premises equipment for multinational corporations, small and midsized businesses, and governmental and wholesale customers. In addition, it offers broadband fiber and legacy telephony voice communication services to residential customers.
The company markets its communications services and products under the AT&T, Cricket, AT&T Prepaid and AT&T Fiber brand names. Its Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brand names.
Recent negative press over the potential clean-up of lead landlines has caused the stock to be crushed. However, with huge cash flow and a solid customer base, this could be a massive total return win as the dividend now remains safe.
AT&T stock comes with a 7.68% dividend. Wells Fargo has set its price objective at $20, while the consensus target is $18.61. The stock closed on Wednesday at $14.62.
Energy Transfer
This top master limited partnership (MLP) is a safe way for investors looking for energy exposure and income. Energy Transfer L.P. (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all the major domestic production basins.
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