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Non-Tech : Philip Morris - A Stock For Wealth Or Poverty (MO)
MO 58.60+0.9%3:59 PM EST

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To: md1derful who wrote (6163)3/22/2001 1:12:07 PM
From: Xianming Liu   of 6439
 
Doc:

In absence of bad litigation and regulatory news, the dividend of big MO will provide a floor for its share price. At price of $42.5, the yield on the basis of annual dividend of $2.12 per share is about 5%. In contrast, the 13-week T-bill has a yield of less than 4.2% while five-year T-note carries a yield of less than 4.4%. The fed fund has just cut to 5% and is highly likely to move lower in next few month. Based on the past experience, MO will likely to raise the annual dividend from current $2.12 to $2.32 by the end of August.
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