For income investors, the dividend yield is something to look up for. A stock that sports a lucrative and continuously growing dividend yield is a good one for such investors and that’s why Altria Group Inc (NYSE:MO) remains among the most sought after stocks. On Thursday, August 22, 2019, the cigarette and smokeless tobacco seller announced a decision to raise its dividend by a handsome 5% to $0.84, up from $0.80. The stock’s annualized dividend now stands at $3.36 per share or 7.3%.
The unpredictable dividend yield isn’t a good factor for investors who prefer low-risk stocks. That’s why stability is key, and this is something that’s found in stocks that have a robust foundation, stable management, a large market share, and attractive forecasts. For half a century now, Altria Group Inc (NYSE:MO) has demonstrated that it has a stable dividend yield. Over the period, the company has been handsomely rewarding its shareholders in spite of the many hiccups that have characterized the tobacco market for years. The dividend yield of Altria Group Inc (NYSE:MO) has been witnessing growth, with some quarters even posting growth percentages higher than 14%.
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Altria Group Inc (NYSE:MO) has a market cap of $87.03 billion. It’s currently having a 52-week high of $66.04 and a low of $42.40. The stock has posted a growth of 10.80% over the past 5 years. Analysts expect it to realize a growth of 6.83% over the next 5 years. In its latest quarterly results released on July 30, 2019, the company posted earnings per share of $1.1, which met the consensus analyst’s expectation. In the quarter before, the company posted earnings per share of $0.9, coming shy of the consensus estimate of $0.92. The revenue for the period was $5.19 billion compared to analysts’ expectation of $.5.08 billion.
Analysts are expecting Altria Group Inc (NYSE:MO) to grow over a 5-year period. Things are looking pretty decent for the cigarette seller, but there are some uncertainties, particularly because of the cannibalization by the e-cigarette market. The company has chosen to maintain its full-year earnings guidance but was compelled to cut down on its outlook for the cigarette volumes, dropping by 5% to 6% from a previous forecast decline of 4%-5%.
Generally, Altria Group Inc (NYSE:MO) is still worth pumping money into for those who’re keen on dividend yields, and the fact that the future looks decent means the risk is low, a good thing for most investors.
Altria Group Inc (NYSE:MO) is an American company headquartered in Richmond, Virginia, United States. The company ranks among the world’s largest sellers of cigarettes, tobacco, and related products. It sells its products globally and had revenue of $25.36 billion in 2018.