Investors Love Altria's 10%-Yielding Dividend: Is There Hope for More in 2024?
Tobacco stocks are a controversial niche in the investing community. But regardless of your stance toward them, cigarette makers are famous for paying huge dividends. Altria Group (NYSE: MO) has raised its payouts 58 times over the past 54 years, and it yields a whopping 10% at its current share price.
Dividends aren't everything, though. That share price is down nearly 50% from its high in 2017. Could investors finally get something positive out of Altria in 2024 besides its dividend? For that to happen, it would have to overcome some fundamental challenges.
Most articles you read about Altria -- or any tobacco stock -- will emphasize next-generation nicotine products like oral pouches or electronic cigarettes. These are certainly important (and increasingly so), but the long-established cigarette business is still what pays for the dividends Altria distributes to shareholders every few months.
Source Fool.com
