High-Yield Dividend Stocks: Altria (MO)
Dividend Yield: 5%
Market Cap: $76 billion
Altria Group (MO) is a tobacco giant that is the parent of Philip Morris (PM) cigarette brands, John Middleton cigars and St. Michelle Wine Estates among other subsidiaries. While these products don’t exactly sound like the typical consumer staples like bread and milk, they do provide a remarkably consistent stream of revenue for Altria — and stable share price and dividend payments as a result.
With a beta of about 0.49, Altria is one of those dividend stocks that has a lot less “wiggle” than the broader market. And in addition to its bulletproof dividend, it has more than $3.1 billion in cash on the books and a debt-to-asset ratio of just 33%. All that adds up to a lot of liquidity and stability if things get rocky — without risking a dividend cut.
Clearly, tobacco is not a growth industry, and like APU it’s unlikely there will be a spike in share prices for this tobacco giant anytime soon. And it’s also worth noting that shares have lagged modestly, with Altria stock up about 7% in the last 12 months, compared with 17% gains for the broader S&P 500 index.
But with a 5% dividend and a history of payments since 1928, there are fewer high-yield dividend stocks out there as attractive as MO.