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Trading Idea of the Day
NYSE:MO - Altria Group Inc - (BULLISH - long term & BULLISH - short term)
- Key levels on the chart - consider taking trades from key support/resistance zones.
With increased health awareness, tobacco usage has relatively declined over the years as smokers continue to quit. However, the U.S. remains a leading tobacco producer globally. Moreover, in 2022, the value of the global tobacco market amounted to around $912 billion.
The lockdown-induced stress has also led to increased consumption among many, and the industry is benefiting from this new habit. Companies spend substantially on marketing campaigns that have produced considerable results and help in remaining competitive.
Moreover, amid rising awareness regarding the ill effects of its consumption, new nicotine products, also referred to as Next-generation Products (NGP), are being introduced that are significantly less harmful than conventional products. The global tobacco market is expected to expand at a CAGR of 2.4% from 2022 to 2030.
In addition, tobacco leaves are relevant for several medicinal purposes. Also, organic tobacco usage has gained substantial popularity over the past years. According to Report Ocean, the global tobacco market is projected to grow at a CAGR of 6.7% until 2027.
On October 27, 2022, MO signed a strategic alliance with JT Group. This collaboration is expected to expand MO's current tobacco product offering.
MO has paid dividends for 52 consecutive years. Over the last three years, MO's dividend payouts have grown at a 3.96% CAGR. While MO's four-year average dividend yield is 7.35%, its current dividend translates to a 7.89% yield.
ASX & Economic Key Events
OPTO For Investors Research
Article of the Day: Alphabet shares jump 5% after nuclear fusion breakthrough
Podcast of the Day: Pedro Palandrani on Global X’s Long-Term Approach to Thematic Investing
APAC Daily Report
Market Snapshot & Highlights as of 8:00am AEDT
Global Markets Headlines
- How Sam Bankman-Fried swindled $8 billion in customer money, according to federal prosecutors (CNBC)
- Argentina wins incredible World Cup final in a shootout with France (CNBC)
- Central banks have now given the markets a clear message — tighter policy is here to stay (CNBC)
- China’s sudden ‘reopening’ reveals new challenges as infections soar (CNBC)
- New Covid model predicts over 1 million deaths in China through 2023 (CNBC)
- What’s next for Netflix, Disney and the NFL? 12 media executives predict 2023′s big moves (CNBC)
(All news & data sourced from AFR / The Australian / Bloomberg / Reuters / CNBC / Wall Street Journal / Morningstar / OPTO / Trading Economics)