Stock Idea: Altria (MO, $25.94)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Altria Group Inc. (MO) is a holding company for Philip Morris USA and Philip Morris Capital Corporation, providers of tobacco products, wine and financial services.

Altria has a PE of 12.7, and projected consensus earnings per share (EPS) growth of 7.4%, 7.4% and 7.3% for fiscal years 2011 through 2013. With a dividend of 5.86%, there is very little risk in buying the stock and waiting to see what happens this year.

The stock has been trading between $23.50 and $26.00 since September 2010, and has recovered all the ground it lost during the financial meltdown of 2008. Is Altria ready to start reaching new highs? The chart looks ripe for a breakout, but if your alternative is keeping your money in the bank at less than 1%, then owning Altria is a win-win situation, no matter what the stock does next!

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also managesGoodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. Seedisclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.