Wall Street Gives Up on High-Yield Stocks

"Who needs Altria Group Inc. ( NYSE: MO) when you can own Nvidia Corp. ( NASDAQ: NVDA)? Altria has a yield of 7.2%, a rock-solid balance sheet, and customers who won't go away. Nvidia only rules the hottest sector of the stock market and has for some time. When there was worry about the AI tech bubble a month or two ago, Altria's stock was up 30% for the year."

"Among the stocks that pay large dividends, Altria is also the safest, based on its long-term performance. Its 7.2% yield is based on a forward dividend of $4.24. Over the past 56 years, it has raised its dividend 60 times. The median age of Americans is 39 years. In terms of decades-long high yields, the two most often mentioned in the same breath as Altria are Dow Inc. ( NYSE: DOW) and Pfizer Inc. ( NYSE: PFE). Pfizer's stock is down 6% this year. Dow's is down 47% this year, and it recently cut its dividend."

"In total, Altria has paid out $32 billion in dividends over the fiscal years 2020 to 2024. It has also purchased $8 billion of its shares during the same period. In the most recently reported quarter, Altria's revenue fell 3% to $6.1 billion. However, its adjusted diluted earnings per share (EPS) were up 5% to $1.41. It increased its EPS guidance for the year slightly."

Altria Group yields 7.2% with a strong balance sheet and a stable customer base, providing steady, long-term income. The stock has returned 13% year-to-date, slightly underperforming the S&P 500's 14%, while Nvidia gained about 40% and roughly 1,400% over five years. Altria raised its dividend 60 times in 56 years, paid $32 billion in dividends and repurchased $8 billion in shares from 2020–2024. Recent quarterly revenue fell 3% to $6.1 billion, adjusted diluted EPS rose 5% to $1.41, and EPS guidance was nudged higher.

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