Altria Group (MO)
Altria Group (MO) sells tobacco products, and no matter how much people are told that smoking is bad for them, they continue to use tobacco. That’s never going to change, and I don’t think Altria’s 43-year history of being a dividend stock is going to change, either.
The yield is very generous at 5%, and almost all of Altria’s free cash flow is paid out as dividend. Free cash flow is almost equivalent to operating cash flow because there just isn’t much capex in this business. It’s the beauty of a repeat purchase product that makes this one of the absolute best dividend stocks.
As of this writing, Lawrence Meyers did not hold a position in any of the aforementioned securities. He is president of PDL Broker, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at firstname.lastname@example.org and follow his tweets @ichabodscranium.