"Of the stocks that pay large dividends, the safest is probably the tobacco company Altria Group Inc. ( NYSE: MO). Its 6.45% yield is based on a forward dividend of $4.24. Over the past 56 years, it has raised its dividend 60 times. The median age of Americans is 39 years."
"So far this year, Altria has offered another benefit, which is relatively unusual for high-yield stocks. The share price has risen 26% since the start of the year. The S&P 500 is 13% higher in that time. Megacap tech companies are considered the stock market leaders this year. However, Amazon.com Inc. ( NASDAQ: AMZN) is flat in 2025 and Apple Inc. ( NASDAQ: AAPL) is up 1%."
"In total, Altria has paid out $32 billion in dividends over the fiscal years 2020 to 2024. It has also purchased $8 billion of its shares during the same period. In the most recently reported quarter, Altria's revenue was down 6% to $5.3 billion. However, its adjusted diluted earnings per share (EPS) were up 6% to $1.23. It affirmed its guidance of a 2% to 5% increase in EPS for the full year. Its success in the most recent quarter came from its legacy business: Billy Gifford, Altria's chief executive officer, commented, "Our highly profitable traditional tobacco businesses performed well in a challenging environment in the first quarter." Almost all of Altria's revenue comes from sales of cigarettes, and there is a theory that many investors are hesitant to buy its stock for this reason. However, the dividend is a significant incentive to offset that."
Altria Group yields 6.45% based on a $4.24 forward dividend and has raised its dividend repeatedly over decades. The stock has risen 26% year-to-date while the S&P 500 is up 13%, with some megacap tech names lagging. Competitors like Pfizer and Dow have underperformed, and Dow cut its dividend. Altria returned $32 billion in dividends and repurchased $8 billion of shares from 2020–2024. Recent quarterly revenue fell 6% to $5.3 billion while adjusted diluted EPS rose 6% to $1.23, and guidance targets 2–5% EPS growth for the full year.
Read at 24/7 Wall St.
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