This Number Keeps Getting Worse for Altria Group: Should Investors Be Worried About This Ultra-High Dividend Yield Tobacco Stock?
Tobacco stocks have been phenomenal performers over the long term. They have strong profit margins and the consistent ability to raise prices, so shareholders who have held on for multiple decades have seen total returns (stock price appreciation plus dividends) that trounce the broad market by a wide margin.
However, in the last 10 years, the largest tobacco companies have struggled. Altria Group (NYSE: MO), which controls the Marlboro brand within the U.S., has posted a 103% total return for the past decade, less than half what the S&P 500 returned over the same period.
Even with this recent underperformance, Altria has grown its earnings and quarterly dividend payout. It now sports a sky-high dividend yield of 8.7%, making it one of the most generous dividend payers in the entire stock market.
Source Fool.com
