This Tobacco Stock's Dividend Is Now Yielding 9%: Time to Buy?
Another year, another dividend increase for tobacco giant Altria Group (NYSE: MO). In August, the company approved a 4.3% increase to its quarterly dividend. It's now paying $0.98 per share, or $3.92 on an annualized basis. The Dividend King has raised its dividend payout for 54 straight years, one of the best track records ever.
At the $3.92 annualized payout, Altria boasts a dividend yielding over 9%. Investors have become pessimistic about tobacco stocks in recent years, which explains the high yield. Shares are down 31% in the last five years, even though the dividend per share has gone up 31% over the same period. Does that make Altria the right income stock to buy for your portfolio today? Let's take a look.
At its core, the driver of Altria's business is the Marlboro cigarette brand. The premium smokes are the leading product among tobacco users in the United States, holding a 40% share of industry sales.
Source Fool.com
