Altria Group (MO) reaffirmed its 2008 guidance for adjusted diluted earnings per share from continuing operations in the range of $1.63 to $1.67. This represents a growth rate of approximately 9% to 11% from an adjusted base of $1.50 per share in 2007. “This full-year earnings per share forecast reflects expected stronger earnings per share growth in the second half of this year when compared to the first half,” said CEO Micheal Szymanczyk.
“Altria and its operating companies have dedicated employees, strong brands, remarkable cash flows, disciplined financial management, and an increasingly diverse tobacco product portfolio,” Mr. Szymanczyk continued and then said, “I believe that these strengths should enable Altria to deliver consistent annual total shareholder return in excess of 12%.”
Following today’s Annual Meeting of Stockholders, Altria’s Board of Directors declared a quarterly dividend of $0.29 per common share, payable on July 10, 2008 to stockholders of record as of June 13, 2008. The ex-dividend date is June 11, 2008.
For those of you not very math proficient, that makes a $1.16 annual dividend for a nice very fat 5.25% yield. A 5% (and very safe and growing) yield and double digit earnings growth. Anything not to like? OK, sure tobacco kills but last I checked, Coke (KO) and Pepsi (PEP) were not “healthy for you” and folks have no qualms about investing with them.
Szymanczyk also said, “As the company looks to the future, it has clear recognition of the fact that conventional cigarettes are harmful in society and we’d like to make some progress on improving that situation,”. He said he plans on doing that by rapidly expanding the company’s line of smokeless products. Szymanczyk said the company already has made a number of modifications to those products based on input from consumers in the test markets (Dallas and Indianapolis). “We’re making remarkable progress,” he said. “We’ve learned a lot that will allow us to efficiently develop our products further.”
Disclosure (“none” means no position):Long MO, none
