Morningstar recommends Altria shares: 9% dividend yield and 28% upside potential - financial expert explains.

Morningstar recommends Altria shares: 9% dividend yield and 28% upside potential - financial expert explains.

According to a report by www.boerse-online.de, Morningstar currently recommends Altria shares, which offer a dividend yield of over 9 percent and a price potential of 28 percent. Morningstar gives Altria a Moat rating based on expectations that the company will outperform its cost of capital over the next 20 years. Although Altria operates in a declining industry, experts see potential due to its cheap valuation, pricing power and cigarette alternatives in its portfolio. Altria's dividend yield is expected to decline to around 7 percent in the long term, while the fair share price is $52. However, Morningstar also points to risks such as declining cigarette sales, reduced presence in emerging markets and possible health-related restrictions in the US.

Given this information, Morningstar's recommendation is expected to have an impact on the market and investors. A 28 percent increase in price potential would increase investor interest and make the stock more attractive. However, Altria's projected reduction in dividend yield could deter some investors who are primarily looking for a high yield. The risks highlighted by Morningstar could also affect confidence in the company's future prospects and lead to a cautious stance on the stock.

It is important that investors consider all of the information and make an informed decision before investing in Altria stock. Morningstar's recommendation should be viewed as part of the bigger picture and the risks should not be ignored.