Summary
Altria was the most successful stock in the United States in the last 50 years, delivering more than 20 percent compounded annual return.
For dividend investors, this company is still a great buy. Altria operates in a consolidated industry and has an immense moat.
There are significant headwinds like vaping and declining smoking rates, but Altria still has plenty of levers which it can pull.
Investment Thesis
I do believe in looking at history when investing. There are certain fundamental traits that make a company succeed over time: high returns on equity, excellent management, and low capital expenditures. I was amazed when looking at the returns Altria (MO) has provided over the last 50 years. The company compounded investors' money at 20.8% for fifty years and was the most successful stock in the Dow Jones Industrial Average by a substantial margin. With the stock down around 20 percent from near recent highs, how do the next fifty years look for Altria, and is the stock still a long-term buy?
