Concerned About Trump's Tariffs? This High-Yield Dividend Stock Is a Must-Buy.

Core Viewpoint - The recent overhaul of U.S. trade policies, including updated tariffs on over 180 countries, is expected to impact various American companies, but Altria Group is positioned to weather these changes due to its domestic sourcing of tobacco products [1][3]. Company Overview - Altria Group is the largest tobacco company in the U.S., owning well-known brands such as Marlboro, Copenhagen, and Skoal [3]. - The company generates nearly all of its revenue from tobacco, with $24 billion in revenue for 2024, of which$21.2 billion comes from smokable products and $2.78 billion from oral tobacco products [4]. Industry Context - The tobacco industry has faced challenges due to declining smoking rates, which have dropped around 20% in the past decade [5]. - Despite these challenges, Altria's revenue structure may benefit from the current economic climate, as tobacco products tend to remain in demand even during economic downturns [6][7]. Economic Resilience - Altria is considered one of the more recession-resistant businesses, as consumers are likely to prioritize spending on tobacco over other non-essential items during tough economic times [7]. - The addictive nature of tobacco provides Altria with significant pricing power, allowing the company to maintain steady finances despite declining smoking rates [8]. Dividend Performance - Altria has been recognized for its attractive dividend yield, which is around 7%, significantly higher than the S&P 500 average [9]. - The company has a strong track record of increasing its dividend for 55 consecutive years, placing it among elite Dividend Kings [10]. - Altria prioritizes maintaining its dividend, recognizing its importance to shareholders [11].