Tom Reese/Paul Rubillo, Dividend.com
It’s official. Altria Group (MO) has acquired shares of UST Inc. (UST) for about $10.3 billion, or $69.50 a share.
Slowing cigarette sales have has forced tobacco companies to look for sales growth from alternatives, such as cigars and chewing tobacco. Smokeless Tobacco sales have been bucking the negative trend, and sales have actually been growing about 5 to 6 percent a year.
The Bottom Line
We spoke about this deal on Friday, and believe that shareholders of both companies have reason to celebrate, as well as readers who were long UST Inc. We like Altria Group shares here as well and would continue to hang on to shares as well.
Altria Group (MO) is a “Recommended” dividend stock, holding a Dividend.com Rating of 3.6 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system here.
