How Safe is Altria and Its Dividend?

In modern investing history, almost no dividend stock has been as reliable as Altria (NYSE: MO), the domestic owner of Marlboro. The tobacco company has raised its dividend 54 times in the last 50 years . According to Wharton professor Jeremy Siegel, the stock was by far the top performer in the market from 1968-2017, generating an average annual return of 20% annually with dividends reinvested.

It's no surprise then that Altria has been a longtime favorite of dividend investors, and its 9% yield is especially appealing in today's market. In ordinary circumstances, Altria would be considered a rock-solid dividend stock, but the coronavirus outbreak has thrown the normal course of the business around the world off track, and that has had consequences even in the tobacco industry.

Image source: Altria.

Source Fool.com