12-21-2021, 09:13 AM
I sold covered calls in the top half of the trading range until my MO shares went away. I wasn't particularly worried about the near-term dividend prospects but the unending and unpredictable pressure from regulatory agencies coupled with the lack of total return makes me believe I have better options for the long-term. I could be wrong but I believe MO share price will be confined to a range until there is a very notable change in the business model. Initial attempts didn't go well of course. I'm confident they are not done trying.
MO would be tempting on a 20% pullback. Traders know the dividend gang will rescue it. I don't see that changing for years. I don't blame people that just want to hold it. They might end up with a 6% average total return for the next decade. That might be market average or better. That we can't know.
MO would be tempting on a 20% pullback. Traders know the dividend gang will rescue it. I don't see that changing for years. I don't blame people that just want to hold it. They might end up with a 6% average total return for the next decade. That might be market average or better. That we can't know.