Companies and Brands
Still Smoking, Altria's Big Dividend Hike Lesson (MO, RAI, VGR)
Published:
Last Updated:
Altria Group Inc. (NYSE: MO) has made good on a dividend hike we have been expecting. The domestic tobacco giant has now increased its regular dividend by almost 8% to $0.41 per common share per quarter. The prior dividend was $0.38 per common share per quarter.
The new annualized dividend rate is $1.64 per common share and the $26.01 share price and that generates a new dividend yield of 6.3%. That is even above our mid-point of the latest Great Dividend Portfolio for Uncertain Times recently published.
Altria targets roughly an 80% payout ratio of its income for dividends. It is not exactly like it is looking for huge acquisitions ahead.
The best statistic is this… Altria has increased its dividend 45 times in the last 42 years.
Reynolds American Inc. (NYSE: RAI) is probably another two quarters out before another dividend hike is announced, and its current yield is about 5.85%. Vector Group Ltd. (NYSE: VGR) could have a hike at any time, but the $0.40 per quarter payout with an $18.27 price generates a current dividend of 8.7%.
It is amazing to be in a business that kills the customers and earnings can keep rising and rising.
JON C. OGG
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.