Want Income for Life? This Dividend Stock Has Funded Investment Portfolios With Growing Passive Income for 57 Straight Years.
Despite declining U.S. smoking rates, Altria remains an elite income stock with a monster 6% yield.
Altria Group (MO -0.18%), a major tobacco company, has been paying out dividends for 57 consecutive years, earning it the title of Dividend King. Despite the decline in cigarette smoking rates in the United States, Altria continues to attract investors due to its growing dividend payouts. The company's financial strength and pricing power, stemming from its top-selling Marlboro brand, have helped it raise prices and maintain its dividend, even as sales volumes have decreased.
Altria distributes around 80% of its cash flow as dividends and uses the rest to buy back its own shares, helping to keep the payout ratio in check. With a strong balance sheet and substantial assets, such as a 150 million share stake in Anheuser-Busch InBev, Altria is well-positioned to support its dividend. While there are risks associated with the company's declining sales volumes and its reliance on the cigarette market, Altria's track record of success and financial stability make it an attractive option for investors seeking a reliable income stream.
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