The Year of Altria (MO)

If you had purchased Altria at the beginning of 2007, you could have experienced an interesting journey of value creation beginning with the spin-off of Kraft.

MO

• Spins-off KFT
• Announces split of Philip Morris Domestic and International
• Sells NYC headquarters for $400+ Million Profit
• Jan dividend - $0.65
  
• April dividend - $0.68
  
• July dividend - $0.69
  
• October dividend - $0.75
• DJIA Component
  
• Return: $74.00 - $66.70 = $7.30 Gain
  

KFT

• Sells Post brands - Ralcorp spun-off shares to be awarded soon
• Investors: Buffett, Peltz, Carlos Slim, Yale Endowment
• Plans to sell more slow-growth brands
  
• March Dividend - $0.25
  
• June Dividend - $0.25
  
• September Dividend - $0.27
• Return: $32.30 - $35.00 =$2.70 Loss