Phillip Morris Or Altria?

Really like both tobacco companies but prefer Altria because even tho their dividends estimated to cut to $2.77 in 5 years I can buy 2 Altria for the price of PM and PM’s estimated dividend in 5 years is about the same as it is now, $4.26. But even if Altria’s dropped to $2.77 if I had two shares it would still be more, Is PM more likely to survive longer? The div cut doesn’t bother me I just want to make sure the company I pick will likely still be around in years to come.

Depends on how long you’re holding. The tobacco market declines 1% every year.

I am personally in Altria for the dividend long term. Altria is the parent company of PM, amongst other companies in this market.

I personally like their long term outlook with the move to smoke less products and the ecig market. They own 35% of JUUL, which is a big electronic cigarette brand. They also own stakes in several large MJ companies, which although speculative at the moment, could be a massive market long term across the US alone.

The diversity of the large e-cigarette investments and MJ space, sold it for me.

Note I chose to limit my exposure to a small position, as I morally don’t want to be investing in a cigarette brand… that’s coming from a smoker myself lol.

Unless their e-cig & MJ investments pay off, expect their stock price to decline in the long term… this market place is still quite speculative at this moment in time.

I hope this helps you ! There will be no div cut any soon :slight_smile:
https://seekingalpha.com/article/4378891-mirror-mirror-on-wall-which-tobacco-stock-is-fairest-of-all

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Have similar opinion to the author on SA.

BTI seems deep value play, PM seems best positioned with new non burning products.

BTI forecast ROR:

PM forecast ROR:

If they ever return to historical fair value PE, BTI has nice Annual 48% ROR. PM is more modest with 18% Annual Returns.

Personally went BTI as Croatia still doesn’t have double Taxation treaty with :us: , them 30% Witholding sawkz nutz.

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That’s for the advice guys, I’ve went with Altria as they’re quite unique and well diversified for what they are, having shares in cronos and Wine, Didn’t even know they partially own JUUL either. I’d say they’re undervalued just now but that could change if their investments do shoot up but I don’t see that happening for a while from now.

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Although in the comparisons I read people preferred Altria over Philip Morris financially, I believe IQOS brand of Philip Morris has a great potential for the future when heated tobacco products are more widely used.

As mentioned Altria has a good diversification as well and I actually like this approach but I guess those investments such as Juul do not appear to be very promising right now (compared to initial investment valuation).

I have positions in both companies but I believe in PM more than Altria for the future.

I could be wrong but I don’t believe Phillip Morris have purchased the new machines yet for non burning cigarettes…

Well not as of last week anyway :relieved:

Believe or not, there is a US-Greece tax treaty, but still Greeks pay 30% tax… I love Altria and I do own shares, but I gradually shift to BAT and Imperial Brands too… It is generally frustrating for me, because there are so many brilliant US companies that usually it’s not worth investing in…