Prediction: This High-Yield Dividend Stock Will Payout More in 2024

By Lee Jackson Published Aug 10, 2:52PM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Prediction: This High-Yield Dividend Stock Will Payout More in 2024 — © ShutterstockProfessional / Shutterstock.com

24/7 Wall St. Insights

Stocks that consistently raise their dividends offer investors huge total return potential.
Dividend stocks will become more popular as interest rates decline.
Explore this free report today: Access 2 legendary, high-yield dividend stocks Wall Street loves.

High-yield dividend stocks are a favorite among investors for good reasons. They provide a steady income stream and offer a promising avenue for total return. Total return is a comprehensive measure of investment performance that encompasses interest, capital gains, dividends, and distributions realized over time.

For example, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%. That is, 10% for the increase in stock price and 3% for the dividends paid.

When selecting stocks for their portfolios, one critical aspect for growth and income investors is the safety and security of a company’s dividend and the prospect of the dividend being increased regularly. We decided to screen top blue-chip companies, looking for those that will be increasing their dividends not only this year but beyond.

We then narrowed down our screen looking for a high-yield home run that is likely to raise the dividend payouts to shareholders in 2024, and found one top company could have a dividend increase right around the corner. Investors looking for top dividend-paying companies should also grab this free report today.

Altria has a rich heritage as a U.S. company

One of the world’s largest tobacco companies, Altria Group Inc. (NYSE: MO | MO Price Prediction), sells and markets one of the world’s biggest and most popular cigarette brands, Marlboro. The company noted this on the corporate website:

In 1929, when Philip Morris & Co.’s leaders selected Richmond, Va., as their new manufacturing hub, they didn’t realize their focus on quality would help the company sell more than half of all cigarettes in the United States. Our focus on quality and consumers has helped make us the leader in the tobacco industry for more than 40 years.

In 2003 Phillip Morris Companies is renamed

Known since 1929 as the Phillip Morris Company, the company changed its name to the Altria Group in 2003 and remained the parent company for Kraft Foods Inc., Phillip Morris International, Philip Morris USA, and Philip Morris Capital Corporation.

By 2007, the company spun off Kraft Foods, distributing all of the shares to Altria shareholders. In addition, the company acquired John Middleton the same year, which makes and markets large machine-made cigars and pipe tobacco.

The company grows again in 2009

In 2009 Altria acquires UST Inc., which was a holding company that made moist smokeless tobacco products through the U.S. Smokeless Tobacco Company and premium wines through Ste. Michelle Estates. This strategic expansion widened the company’s product lines as cigarette sales slowed.

Altria sells stake in Anheuser-Busch InBev

After the Bud Light public relations disaster, the company decided to sell some of its massive position in the brewing giant. Altria used to own over 10% of Anheuser-Busch InBev S.A. (NYSE: BUD), the world’s largest brewer.

Earlier this year the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of their holdings but still leaves a hefty 8% of the outstanding shares in their back pocket. The company also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Altria could raise the dividend in August

Altria Group has increased its dividend every year since 1970, making the company a member of the exclusive Dividend Kings. The current dividend yield is a generous 7.93%. In the past five years, management has lifted the dividend by an average of 5% annually.

Based on published reports Altria Group usually announces quarterly dividend raises in August, but the board of directors has the discretion to decide on future payments. Here is the upcoming dividend schedule for the stock.

Declaration date: August 22, 2024
Ex-dividend date: September 16, 2024
Record date: September 16, 2024
Payment date: October 10, 2024

Altria is a solid long-term high-yield dividend winner

As one of the very few blue-chip high-yield dividend stocks, Altria should continue to be a core holding for investors seeking large and dependable passive income streams. While cigarette smoking has plummeted in the United States over the last 40 years, it still remains popular, especially in Asia, Indonesia, and parts of Europe. Shareholders should continue to be richly rewarded with solid total returns, especially when interest rates start to decline and high-yield dividend stocks return to prominence.

The Single Best Dividend Stock Yielding Over 12%

About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.