Altria Group (NYSE:MO) is every income investor’s dream come true. The stock pays a quarterly dividend of $1.02 works towards an annual dividend of $4.08 per share. At the time of writing, the stock yield (dividend payment divided by the stock price) is 8.2%. That could be possible to make it is an excellent choice for anyone focused on generating income from their stock portfolio.
In short, the company is expected to pay out approximately $7 billion value of dividends this year and in 2025. However, some developments could change that.
When the company announced its most recent dividend increase in August 2024, it represented Altria’s 59th such increase in the past 55 years.the company formerly known as Philip Morris).
Indeed, dating from In 1985, Altria increased its dividend by more than 2,300%. Furthermore, that includes the significant dividend cut that occurred when the company spun off Philip Morris International company and sold its majority stake in food giant Kraft (which later became part of Kraft Heinz).
Crucialfor a stock with a high value like Altriathe company’s dividend looks stable. Altria has a payout ratio of 68%, meaning about two-thirds of its profits go to covering dividends. General In general, income-seeking investors prefer payout ratios of less than 75%. If a company needs to use more of its profits to meet its dividend obligations, Management may not be able to implement further increases, and maybe even should reduce payouts.
That said, investors interested in Altria stock should keep an eye on its payout ratio. Altria’s attractive dividend could be at risk if it rises too high.
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