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Balance is the key to success in any business, but it is essential for passive income investors. Finding the right mix of affordability, reliability, dividend yield and potential upside is never easy. While every investor may have a different “Goldilocks zone,” Altria Tobacco may have near-universal appeal. Keep reading to discover how you can earn $1,000 in passive income from this double-dividend king dividend aristocrat that pays a hefty 7.46% dividend.
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Altria (NYSE:MO) is one of the largest tobacco companies in the world, meaning it has a large market share in a product that is in high demand worldwide. Altria’s family of brands includes some of the world’s most recognizable tobacco companies, such as Philip Morris (maker of Marlboro cigarettes) and John Middleton, the company that makes Black and Mild Cigars.
Altria is also active in the smokeless tobacco sector, where its subsidiary, the US Smokeless Tobacco Company, produces iconic brands such as Skoal and Copenhagen. According to the company’s website, Altria’s roots go back nearly 200 years and it is taking proactive steps to ensure it lasts for another 200 years. In addition to its traditional tobacco products, Altria has played a leading role in the production of tobacco alternatives such as nicotine pouches and e-vapor products.
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Altria’s long history and control of many of the tobacco industry’s most iconic brands have helped Altria reach an impressive market cap of $92.88 billion (per Benzinga). As if that wasn’t impressive enough, Altria has proven to be an extremely reliable dividend stock. Public records show that Altria has increased its dividend 56 years in a row. This has given Altria the rare distinction of being a dual Dividend King and Dividend Aristocrat.
Altria performed well enough in the third quarter of 2024 to announce a 4.1% dividend increase. It’s a safe bet that the announcement was welcome news for all Altria shareholders. Benzinga estimates Altria’s current dividend at 7.35%, the highest percentage dividend payout of any dividend king for 2024 (according to SureDividend). More importantly, Altria appears well poised to continue to deliver for investors. It has strong market share, a diverse product line and effective leadership.
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Here’s how to make $1,000 in passive income with Altria stock. Altria’s current stock price is $54.85, which translates to approximately $4.03 per share in annual dividend income (based on the current rate of 7.46%). If you buy 250 Altria shares, your annual income will be approximately $1,007. The total cost of your investment is € 13,712.50.
That’s a solid return on a stock with a long performance history and a relatively affordable share price. It’s important to understand that there is no guarantee that stocks will continue to rise or even pay dividends. That caveat also applies to double-dividend kings and dividend aristocrats. That said, Altria has been raising dividends since 1968. Therefore, it could be the ideal balance between affordability, reliability, risk and return.
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This article How to Make $1,000 in Passive Income with This Double Dividend King and Aristocrat Paying a Big 7.46% Per Share originally appeared on Benzinga.com
