Investing in Altria: Your Defense Against Market Volatility
When it comes to navigating market volatility, having a defensive stock in your portfolio can provide stability and protection for your investments. Altria (NYSE: MO) is a prime example of a defensive stock that can help shield your portfolio during turbulent times.
At Extreme Investor Network, we understand the importance of safeguarding your nest egg, which is why we recommend considering Altria as part of your investment strategy.
Why Altria Should Be in Your Portfolio
In times of a bear market, Altria has proven to outperform the market, reducing potential losses for investors. For example, during the first 60 days of the 2020 crash, Altria stock fell by around 7.2%, while the S&P 500 lost 14.8%. By holding Altria stock instead of the market, investors could have significantly minimized their losses.
Similarly, during the initial phase of the 2008 crash, Altria stock only declined by 5.4%, compared to the S&P 500’s 16.8% drop. This trend showcases Altria’s ability to weather market downturns and protect investor capital.
The Upside of Altria in Bull Markets
While Altria excels during bear markets, it also delivers strong performance in bull markets. Since 2000, Altria has achieved a total return of 12,370%, surpassing the S&P 500’s total return of just 472%. This long-term outperformance highlights the strength and resilience of Altria as an investment.
Altria’s success can be attributed to its recession-proof product offerings, including popular brands like Marlboro and Black & Mild. Additionally, the company’s investments in e-vapor and non-combustible products further enhance its growth potential.
With a dominant market position and a focus on stable, growing markets, Altria consistently pays substantial dividends to investors. The company’s current dividend yield is over 8%, offering investors a reliable income stream regardless of market conditions.
Is Now the Time to Invest in Altria?
While Altria has historically performed well during both market upturns and downturns, the company may face challenges during periods of rapid market growth. However, the current market environment presents an opportunity for investors to capitalize on Altria’s defensive attributes.
With a high dividend yield, strong cash flows, and a discounted stock price, Altria offers investors downside protection in uncertain market conditions. Additionally, the company’s focus on transitioning its business to non-combustible products positions it for future growth.
At Extreme Investor Network, we believe that including defensive stocks like Altria in your portfolio can help mitigate risks and preserve capital during market volatility. Consider investing in Altria to fortify your portfolio against market uncertainty.
Before making any investment decisions, we encourage you to conduct thorough research and consider your individual financial goals.
References: Original content sourced from The Motley Fool