December 17, 2018

Use Altria's High Dividend For Retirement Portfolios


The stock price of Altria (MO) is down over 27% this year. This has clearly been a painful year for equity holders of this once-stable company. But continuing declines in smoking rates in the United States has sparked fears that there is no way Altria can continue its earnings growth over the long run.

The big drop in Altria’s stock price is the bad news, at least for current holders of the stock. But there is a lot of good news for those looking to invest in solid dividend-paying stocks: First and foremost, Altria’s current dividend yield is 5.9%.

It isn’t easy to find a 5.9% dividend yield from a company with a long history of never cutting its dividend. Also, Altria increased its dividend this year by 14% compared to 2017. For those looking for dividend income over the long-run, Altria could be the perfect fit.


How Altria Can Continue To Grow


The decline in U.S. smoking is definitely bad news for this company. But Altria understands they need to diversify and they have been making moves. They recently bought a $1.8 billion stake in Canadian marijuana company Cronos. Altria knows that the tide has turned for legalized marijuana both here in the U.S. and Canada, and they want to get on board early.




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