Altria Group Inc. boasts the highest yield among S&P 500 stocks at 8%, benefiting from consistent dividend raises and a 21% stock appreciation over the last year. Despite flat revenue of $6 billion, per-share earnings surged 54%, driven by price hikes compensating for volume declines. Altria expects modest EPS growth for 2025, yet remains predominantly a cigarette company with Marlboro constituting over 90% of sales. The company holds over $3 billion in cash, indicating potential for future dividend increases, appealing to income-focused investors.
Altria has raised its dividend 59 times in the past 55 years, demonstrating its commitment to returning value to shareholders despite challenges in its primary business.
Despite revenue remaining flat at $6 billion in the fourth quarter, Altria's per-share earnings experienced a remarkable 54% increase, reflecting the company's efficient management.
Altria's strategy of regular price hikes has mitigated volume declines, enabling annual earnings growth and sustained dividend increases, which is crucial for investor confidence.
With over $3 billion in cash and a focus on sustainable dividend payments, Altria presents an attractive option for income-focused investors.
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