• Troy Springer

Altria - MO

Updated: Jun 9, 2020

Relatively low capital requirements allow the company to return significant capital to shareholders in the form of an 80% dividend payout ratio.

Investment Checklist

1.Does the business serve a crucial economic need or fit an important trend or industry?

2.Does it have a healthy balance sheet or use debt in a responsible value accretive way?

3.Can it generate sustainable high returns on invested capital?

4.Is it generating strong and growing free cash flow?

5.Does it have defensible competitive advantages?

6.Does it have a strong management team focused on driving long-term, profitable growth?

7.Is the management team compensated based on metrics that drive business value?

8.Does the company have a unique workplace culture, strong governance, is founder led/has high inside ownership?

9.Are we investing in a favorable part of the 1. business 2. industry 3. hype cycle?

10.Is the business within my valuation’s buying range if valuable? OR is reasonably priced in difficult to value?

11.Do any investors I respect also own the stock?

Research Note