Friday, November 5, 2010

ALTRIA GROUP "WORLD'S GREATEST INVESTMENT"

I know it hasn't been popular to invest in the tobacco industry for quite some time now, which might explain (in part at least) the mediocre/poor performance of Altria Group's (MO) stock price.  However, I recently read an article on the Motley Fool website which presented a good argument for Altria being possibly the "world's greatest investment."  They made some good points about how stocks with slow growth and high yields can make stellar gains through reinvested dividends over a period of time. 

I've owned shares of Altria for quite some time now and, after reading the article, have decided the best use of their dividends would be to reinvest and increase my stake in the company.  Some may think this an insane move with tobacco use on the decline in the U.S. for several years now, but I seriously doubt that the industry will fold anytime soon.  Basically what you have is a simple business model consistently churning out cash for shareholders.  As a smoker, I have no qualms about investing in the tobacco industry.  I'm sure there are plenty of people who would disagree.

Closed on my purchase of AGNC shares earlier in the week and collected some great dividends from Campbell's Soup, AT&T and Universal Insurance Group.  The month is off to a great start, hope to see it continue through the rest of 2010!

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