Here's How Much $10,000 in Altria Stock Pays You Each Year
Changing smoking habits may not necessarily strip Altria of its dividend stalwart status.
Altria Group, the parent company of Marlboro and Philip Morris USA, offers an appealing dividend yield for investors. With a current stock price around $78 per share, a $10,000 investment translates to approximately 128 shares. Altria's quarterly dividend stands at $1.11 per share, amounting to $4.44 per share annually. For the 128 shares, this yields a total of $568.32 in annual dividend income, equating to a 5.7% yield.
This yield surpasses the current annual dividend yield of the S&P 500, which is around 1.1%. Altria has a commendable track record, having raised its quarterly dividend for 57 consecutive years, placing it among the Dividend Kings, companies with a history of at least 50 years of consecutive dividend growth.
While Altria's payout ratio of 88.5% appears high, the company's management has targeted mid-single-digit dividend per share growth annually. Recent indications of a 4.7% increase in the quarterly payout bolster confidence in its sustainability. Altria's robust dividend policy appears promising, particularly with the rising prices of cigarettes and the growing popularity of smokeless products, which contribute to the company's sales.
The recent upward revision of Altria's full-year earnings growth guidance to between 4.5% and 6% further strengthens the case for its ability to maintain and potentially raise its dividend at a modest rate in the years ahead.
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