I think we should be considering MO for our portfolio. It is the King of defensive stocks and pays a nice dividend of 3.8%. As you can see there are a lot of buy recommendations out there. Within the next month they should be announcing break up plans of PMI from PM U.S. which should send the price higher. Last year they spun off Kraft and shares are 20% from those levels. I see no difference here.
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*Disclosure: I own shares of MO
i own MO also and like collecting the divided and seeing the stock price rise, but it does look a bit expensive at this moment.
I've been a big fan of MO over the past couple of months due to the dividend, the coming spin off and the nice stability it offers during this kind of market. Although I also think it's a bit too expensive as it is just coming off its 52-week high, I think it has a bit more room to go, possibly into the low to mid 80s, but thats just a speculation.
It may be a little expensive but I still think it is the best recession play out there. International sales are great and the dividend will help us in any market downturn. I watched it like a hawk through all this turmoil and it has performed very well and will continue to do so in the future. I see no company specific events taking the price down and worst case scenario it trends down with the market or stays around 76. Let's say the market tanks but MO stays around 74-75 then we would still come out on top.
Great take
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