Best Stock to Buy Right Now: Altria vs. Costco

Altria (NYSE: MO) and Costco (NASDAQ: COST) are pretty different companies, but they share a subtle similarity. What is that similarity? Extremely loyal customers. But there are very real issues for investors to consider with each company before buying in. Here's what you need to know.Altria's biggest business is selling high-end cigarettes under the iconic Marlboro brand. After spinning off its foreign operations into Philip Morris International (NYSE: PM), Altria only operates in the U.S. market. That said, the nicotine that cigarettes deliver can be addictive, leading to those highly loyal customers noted above. This has been very important for Altria in recent years.Despite the addicting nature of cigarettes, cigarette volumes have been in a steady decline. That's across the industry, not just an Altria issue. The way cigarette makers have been combating the negative volume trends is by increasing prices. So far, the most loyal customers have been willing to pay up for their favorite smokes. And that has allowed Altria to support and grow its dividend. That said, Wall Street is clearly worried about the sustainability of these conflicting trends over time, since the stock offers a lofty 7.9% dividend yield.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool