Tobacco giant Altria is a solid income play for conservative investors. The company has paid out 75% of its free cash flow as dividends over the past 12 months and currently offers a forward annual yield of 3.6% -- much higher than the S&P 500 and its 2.2% yield.
After divesting its stake in Kraft Foods in 2007 and spinning off its overseas business as Philip Morris International in 2008, Altria has hiked its dividend every year. To counter declining smoking rates in America, Altria shrewdly cut costs, raised prices, and bought back shares, which boosted its annual earnings per share 43% between 2005 and 2015 as revenue only increased 4%. Continue Reading...