Ultra-High-Yield Altria Stock: Buy, Sell, or Hold?
On the surface, Altria (NYSE: MO) looks like a dividend investor's dream stock. It has increased its dividend annually for years. It has a huge 8.2% dividend yield. And it operates in the consumer staples area, which is filled with reliable businesses that sell products consumers use on a regular basis.
But don't jump to hit the buy button. There's a very good reason you might want to sell Altria.
Probably the biggest reason to buy Altria is its huge 8.2% dividend yield. That compares to a yield of just 1.2% for the S&P 500 index (SNPINDEX: ^GSPC) and a yield of just 2.5% for the average consumer staples stock, using Consumer Staples Select Sector SPDR ETF (NYSEMKT: XLP) as an industry proxy. Think about that for a second. Altria's yield is nearly seven times larger than that broader market's yield and over three times the size of the yield offered by the average consumer staples company.
Source Fool.com
