Companies and Brands

America's Best Dividend Stock Thrives in Market Downturn

Douglas A. McIntyre

Published: August 3, 2024 10:44 am

Last Updated: August 5, 2024 6:59 am

24/7 Wall St. Insights

• Altria Group Inc. (NYSE: MO) is the best large dividend stock traded on any American market.
• The stock has risen 10% in the past month, while the Nasdaq has dropped 3%.
• Also: Dividend legends to hold forever.

Altria Group Inc. (NYSE: MO), the big tobacco company, has a stock that has risen 10% in the past month, while Nasdaq has dropped 3%. Altria is also the best large dividend stock traded on any American market. It has a 7.7% yield, strong cash flow, and a rock-solid balance sheet.

Altria stock’s attractiveness has been acknowledged several times this year. Recently, Investor Place added it to a list of attractive holdings, including “3 Undervalued Blue-Chip Stocks to Buy at a P/E of Less Than 10.” Even 24/7 Wall St. has mentioned the strength of the shares.

Altria has raised its dividend for 54 years in a row. Its payout ratio is over 80%, which means 80% of the company’s earnings go to shareholders.

Altria left its guidance intact when it announced its most recent quarterly earnings. “We reaffirm our 2024 full-year adjusted diluted EPS guidance range of $5.05 to $5.17, representing a growth rate of 2% to 4.5% from a base of $4.95 in 2023.”

In that quarter, revenue slipped 2% yearly to $5.6 billion. Net income surged 19% to $2.1 billion, and 88% came from cigarette sales. Altria also had $3.6 billion of cash and cash equivalents on its balance sheet, and the current portion of its long-term debt was zero.

There is a theory that Altria keeps a high dividend to attract investors to a tobacco company. Each investor will need to decide on this issue individually.

Want $500 in Passive Income: Invest This Much in Altria Stock