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+--- Thread: Very interesting report from MO's quarterly today (/showthread.php?tid=2278)
Very interesting report from MO's quarterly today - Dividend Watcher - 04-30-2026
Last time it was mentioned here, there were some with concerns in this thread with MO being a viable investment.
In the meantime, I was looking for investments to add when I retired and, coincidentally, my father's estate was finally over the probate waiting period so had some extra cash from that. Since I no longer had a regular paycheck, I was looking for something to create some regular income and added MO to several of my portfolios.
Some of the highlights from the earnings call (commentary on Yahoo! finance):
- Delivered 7.3% adjusted diluted EPS growth driven by strong smokeable product income and disciplined execution across the total nicotine portfolio.
- Cigarette volume declines moderated to 4% (adjusted), attributed to a slowdown in cross-category movement as the illicit flavored e-vapor market shows signs of saturation and increased enforcement.
- Reaffirmed full-year 2026 adjusted diluted EPS guidance of $5.56 to $5.72, representing 2.5% to 5.5% growth.
- Shifted growth expectations to be more balanced between the first and second halves of the year, reflecting stronger-than-anticipated Q1 volume performance.
- On! PLUS is currently the only product accepted into the FDA's pilot program designed to streamline PMTA reviews for oral nicotine pouches, with final marketing authorizations still under review.
- Retired just over $1 billion of debt in February, maintaining a total debt-to-EBITDA ratio of 1.9x in line with long-term targets.
I, for now, will continue to hold. I don't have large positions but adequate for my income needs for the foreseeable future. If it takes a big dip from the strong run it's had over the last year. I may add a bit more.
My one regret was I didn't listen to the common wisdom here and from Chuck Carnevale (FASTGraphs) back when I was dumping T due to the dividend cut and moving some of the money over to VZ.
Thoughts?