re: the "correction" seems to have begun.....how low do we go? prediction thread

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Anyone care to tell me why it would be smart to invest in them now? Seems like their time has sailed, especially with recent onslaught of legislation against Smoking

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Well as a convenience store owner i can tell you a few reasons why altria is king

1. 4.92% yield so even with 0 growth you will make nearly 5%
2.Smoking rates are declining but altria ups prices on everything every year and people keep buying.
3.Altria isn't just marlboro, it's skoal,copenhagen, benson and hedges and many more.
4.Altria owns 27% of SABMiller, yes miller lite and many other famous beer brands all over the world and many wine companies
5.Legal Marijuana seems like its on the horizon and if any major company is involved in will be altria
6. the 800 lb gorilla in the room, some studies show states rely so much on tobacco taxes that they would have to DOUBLE our current income taxes to offset a loss of tobacco tax.....so not happening.
7.tobacco taxes are raised constantly bc the government knows smokers will pay it and keep going, listen I have 3 convenience stores in texas and 1 in florida. In texas I can go to an indian reservation and pay $2 for a pack of marlboro without a tax sticker, come to my stores its $6.19....that's all tax, I buy those for $5.10/pack. Up in New York those packs are $13-14....all taxes....bottom line is altria is profitable selling those cigs to stores at $1.50 or whatever they price it at bc cigs cost nothing to product.

Smoking is going nowhere, moreover smoking + 25% of miller lite is enough for me, throw in all the other big brands they own and altria is a slam dunk for me, 4.92% yield + even just awful 4% appreciation = 8.92% annual return....

Like I said, I've owned it for 20 years and Im up so much, since 1971 altria is up 48,000% the best perfomer on the planet. I love it, own tons, but I'm pushing more into PM these days bc its the same company overseas selling the same products but has more growth prospects and the dividend is just 1% lower

Altria is solid at these level but its dividend payout is like 85% and with revenues not growing much it's not gonna grow much or grow the dividend much but 4.92% is massive and the compounding with new shares is amazing I LOVE it but i think buying today your better with philip morris

and to answer your question, the united states government needs altria more than you think.......and personally i think the government knows that smokers will pay up whatever they ask so they keep going up. You know Copenhagen thats like $4 in texas is $20/tin in canada? So about $100/sleeve. People in texas would shite themselves if it hit that but I saw it with my own eyes in toronto

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Well as a convenience store owner i can tell you a few reasons why altria is king

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Thanks for doing the work for me...



***LogsintoaccounttoputbuyorderonAltria***

13,750. Why, you ask?

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90% of my portfolio is hold for life

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Is this 100% individual stocks? The reason I ask is i have always been an index investor because I dont want to actively manage. Just keep on adding on. But, this sounds like you are doing the same thing but with better dividend yield than my 1.97% from my index fund.?

How do you like CAT? I'm thinking of buying them in the near future - seems undervalued, solid company, good dividend - they seem to be under the radar.

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How do you like CAT?

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Been in it a while. I'm not liking it too much since February. It's dropped about 15% from those highs but is now trading where it was before the crash of 2008. Big industry cyclical betting on large scale infrastructure recovery. I'm staying with it but I wouldn't say it is under the radar.

it all depends on location. Fountain drinks are great but technically something like ATMS and air machines are better.

I have 4 ATM machines that are basically loaded every day with cash from the register and return $2.75 net on a $2500/machine. Air machines are even less money and turn $1 profit on every use so their profit margin is higher haha. Margins are low in the grocery business, if you break it down after bills and employees most make like $30-40/hr given a 24 hr workday

I have 2 garages at 2 of the stores, those bring in the most I'd say its definitely not selling 1,000,000 gallons of gas a month at .08 margins not counting credit card fees

Individual cigars are great too....not to be racist but damn black people love that stuff. I sell at one store close to 300 individual cigars a day for $1, they don't like buying the pack for $3 so they pony up $1 at a time...smart...but im not complaining...they love their weed and typically pay cash so i dont get hit with more cc fees

If you mean by future growth?

Id say

Visa(20% of the world uses CC's and inflation means MONEY)
PM(growing smokers all over the world)
MCD(expanding like crazy in china)
CVX
MO

Thats how Id rate my top 5 in terms of growth, look if you're young and have time on your side, I feel visa is going be an unreal story one day but the dividend is .75% but its growing at an insane pace, just read this morning US payments are up 12%.......who the hell uses cash anymore? Also as your bills go up every year visa makes slightly more money....

if you'd rather a huge dividend and accumulation of more share, PM without a debt best dividend stock, buy it, hold it for life, thank me in 25 years

both PM and V should dominate the next 25+ years easily I dont see anything that could disrupt them, they're both market leaders in must have items, buy PM today under $90 thats an insane deal, V has had a crazy run up this year from $111 to $180 now but as someone who holds forever, I dont care I'd buy more today but in terms of whats run up more this year.....PM is less than it was last summer bc its a defensive stock.....so id buy that today over V but V is still cheap at $180 but its had awesome run up already.

The problem with Visa is you wont add new shares with DRIP and if there is a big correction Visa will get hit like all others and lets say you put $10,000 in your dividend will be $19/quarter hardly gonna buy you anything when it corrects......$10,000 in PM will buy you 1 new share a quarter

on the plus side Visa's dividend has grown from .44/yr to $1.32 a year in just the last 2 years, that is unreal growth and like i said, go read their balance sheet....80% margins...that dividend will grow and grow for a looooooong time

haha i mean listen this is my favorite calculator its a backtest calculator where you can backtest some stocks you love with dividends reinvested

LINK

If you put $3000 in coke 40 years ago and invested $50/month you'd have $1,200,000 today so i wouldnt say your wifes investment would be nothing, but it definitely wouldn't compound quickly with such a low dividend.....but i dont think you can invest $50 in visa unless its a direct purchase plan which i dont know if they have

Best of luck.....Id put that money in something you know is gonna be here in 40 years and go with that....i like phillip morris, but coke,pepsi,general mills,exxon,chevron all should suffice and make you very happy