Altria (MO) suffered a severe setback late last month after the surprise announcement by the FDA about a proposed reduction of nicotine levels in cigarettes. Altria fell as much as 20% intraday before slightly recovering to just a 10% drop. However, this decline still represents a rare buying opportunity in one of the better dividend growth stocks in the market.
FDA news is more bark than bite
While increased regulation is never a good thing for a stock like Altria, it seems as if the market is way overreacting. This is especially the case given the current occupant of the White House campaigned on a promise to lower regulations, not increase them.
