Howard Marks: Altria (MO)
Let’s now jump to the portfolio of Oaktree Capital’s Howard Marks.
Marks is one of the most respected investors in the business, and I reviewed his most recent book, The Most Important Thing Illuminated, earlier this year. (Warren Buffett, incidentally, laconically called it “that rarity, a useful book.”)
Marks initiated a position last quarter in the mother of all dividend payers: Big Tobacco giant Altria (MO).
I’ve been fairly bearish on Big Tobacco for the past year, and I consider Altria to be a little on the pricey side given its lack of growth prospects.
That said, if the market cools off after its recent blistering rise, a defensive name like Altria will probably hold up better than most. And its 5.1% dividend yield is nearly double the yield on the 10-year Treasury.
Altria is not my favorite dividend stock. But you could do worse.