• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

The Best Long-Term Investment of My Career

For the first time in a while, I'm making an additional buy in this profitable name.
By JAMES "REV SHARK" DEPORRE
Jan 10, 2023 | 11:12 AM EST
Stocks quotes in this article: QQQ, IWM, MO, PM, MDLZ, KHC, AAPL, AMZN

Jerome Powell spoke Tuesday morning in Sweden, however, the Fed Chair didn't say anything that is impacting short-term market movement. He talked about general Fed policy in regard to things such as environmental issues but offered no new hints about short-term policy direction.

Stocks are choppy but with a positive bias so far. Breadth is running slightly positive; we have only 45 new 12-month highs to just 30 new 12-month lows. There are a few pockets of momentum with biotechnology bouncing back from a very poor day Monday. The Nasdaq 100 (QQQ) and small-caps (IWM) are exhibiting a little relative strength.

As we approach earnings season, there appears to be a little more focus on stock-picking. While biotechnology has been one of the leading groups for a while, there are quite a few badly beaten-up small-caps that are attracting some bargain hunting. They are still a very high risk on earnings news, although this is less correlated action, which is always refreshing to see.

I don't often discuss stocks that I hold for the very long term, but I do own a few that are in DRIP (dividend reinvestment plan) accounts that automatically reinvest the dividends.

My best investment long-term has been Altria (MO) , which is primarily a tobacco stock. I bought it back in the mid-1990s and have held a core position since then.

Altria has paid consistently high dividends for many years and has since then spun off some winners, resulting in current names including Kraft Heinz (KHC) , Phillip Morris International (PM) , Mondelez (MDLZ) , and others.

When the value of the dividends and spinoffs are taken into account, MO has outperformed most of the market and favored longer-term names such as Apple (AAPL) and Amazon (AMZN) .

I bring this up because, for the first time in a while, I'm making an additional buy of MO. MO's dividend yield is currently a little over 8% and is trading with a forward P/E of about 10. That is historically a very favorable ratio.

In addition, Altria's management has been very skillful at navigating the issues involved in tobacco and finding ways to continue to increase its dividend. They are currently faced with several substantial issues, but the attraction of the reinvested dividend at this level makes me a buyer.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Rev Shark was long MO, PM, KHC and MDLZ.

TAGS: Dividends | Fundamental Analysis | Indexes | Investing | Markets | Stocks | Trading | Value Investing | U.S. Equity

More from Stocks

Traders Face the Fed Facts

James "Rev Shark" DePorre
Feb 8, 2023 4:26 PM EST

We've seen some denial about the level of Fed hawkishness, and the action now reflects a more realistic view of the economic situation.

Further Price Weakness Lies Ahead for Zoom Video

Bruce Kamich
Feb 8, 2023 2:35 PM EST

Here's what traders should avoid.

Here Are 2 Reasonably Valued Stocks Made for the 'Compression'

Bret Jensen
Feb 8, 2023 11:30 AM EST

These companies managed to produce solid results in a difficult fourth quarter.

Snap-On Is Close to a Major Upside Breakout

Bruce Kamich
Feb 8, 2023 11:18 AM EST

Here's what aggressive traders could do now.

'What Me Worry?' Market Is Ignoring Big-Time Wall Street Bears

James "Rev Shark" DePorre
Feb 8, 2023 11:17 AM EST

What is most notable about three of the most influential market strategists is how bearish they are.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:20 AM EST PETER TCHIR

    Powell, 0DTE Options and How I View This Market Right Now

    Fed Chair Powell is saying all the things I think ...
  • 08:22 AM EST REAL MONEY

    LIVE EVENT: Bruce Kamich and Todd Campbell Share Their Stock Market Insights

    This Monday, Feb. 6 at 12 p.m., our very own exper...
  • 02:58 PM EST REAL MONEY

    Sarge Guilfoyle Breaks Down the Jobs Report, Fed Policy and Stocks!

    Watch it here!
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login