Could Investing $10,000 in Altria Make You a Millionaire?
Altria (NYSE: MO) isn't a household name in the consumer staples sector, but its main brand is probably one you know. Indeed, its Marlboro cigarette brand has a nearly 42% share of the U.S. cigarette market. Add in a 7.3% yield backed by a growing dividend, and you can see why investors would be attracted to Altria's shares. Could a $10,000 investment help get you to millionaire status? Maybe, but you need to balance the reward against the risk before jumping in.Altria is a consumer staples company because the tobacco products it makes are bought frequently by consumers regardless of the market environment. That has something to do with the nature of nicotine, of course, since tobacco, unlike food and personal care items, is not really a necessity. The main tobacco product that Altria sells is cigarettes.Image source: Getty Images.Continue reading
Altria (NYSE: MO) isn't a household name in the consumer staples sector, but its main brand is probably one you know. Indeed, its Marlboro cigarette brand has a nearly 42% share of the U.S. cigarette market. Add in a 7.3% yield backed by a growing dividend, and you can see why investors would be attracted to Altria's shares. Could a $10,000 investment help get you to millionaire status? Maybe, but you need to balance the reward against the risk before jumping in.
Altria is a consumer staples company because the tobacco products it makes are bought frequently by consumers regardless of the market environment. That has something to do with the nature of nicotine, of course, since tobacco, unlike food and personal care items, is not really a necessity. The main tobacco product that Altria sells is cigarettes.
Image source: Getty Images.
