Naughty or Nice Part II: 5 Delightfully Sinful Dividend Stocks

Stocks with social stigmas often also have bargain pricings

      View All  
Naughty or Nice Part II: 5 Delightfully Sinful Dividend Stocks

Altria

altria Naughty or Nice Part II: 5 Delightfully Sinful Dividend StocksDividend Yield: 4.7%

I’ll start with a sin stock standard, American tobacco giant Altria (NYSE:MO). As the poster boy for Big Tobacco, Altria is probably the most hated company in history. If Altria were a movie character, it would be Darth Vader.

It also happens to be the most profitable investment in history, according to Jeremy Siegel’s The Future for Investors. Dr. Siegel’s calculation assumed the reinvestment of dividends, of course. And when you buy shares of Altria, you should accept that you are buying the stock specifically for its dividend because the company’s business is in long-term terminal decline. Cigarette smokers will continue to light up, but their ranks are not growing and cannot be expected to.

At current prices, Altria yields 4.7%. This is a little lower than I would normally like to see for a tobacco stock, but it still makes Altria one of the highest-yielding stocks in the S&P 500.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/naughty-or-nice-part-ii-5-delightfully-sinful-dividend-stocks/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.