Want $10,000 in Passive Income? Buy 2,360 Shares in This Dividend Stock

Core Viewpoint - Altria Group has a long history of paying and increasing dividends, but its current business fundamentals raise concerns about the sustainability of these dividends in the long term [5][11]. Dividend Information - Altria's board increased the quarterly dividend to $1.06 per share from $1.02, resulting in an annual dividend of $4.24 per share [3]. - To achieve $10,000 in annual dividends, an investor would need approximately 2,360 shares, costing nearly $157,000 based on the closing price of $66.29 [3][4]. Historical Performance - Altria has raised its dividends for 56 consecutive years, placing it in the category of Dividend Kings, which includes companies that have increased dividends for at least 50 years [5]. - The current dividend yield for Altria is 6.4%, significantly higher than the S&P 500 index's yield of 1.2% [6]. Financial Health - Altria's payout ratio stands at 79%, indicating that the company can afford its current dividend payouts in the short term [7]. - The smokeable products division, which generates the majority of revenue, saw a 0.4% year-over-year decline in revenue to $4.6 billion, accounting for 86% of total revenue [8]. - The oral tobacco products division experienced a 6% revenue increase to $728 million, but this was driven by price increases rather than volume growth, which dropped by 1% [9][10]. Market Position and Future Outlook - Altria's total revenue for the second quarter was essentially flat, with a 0.2% increase attributed to higher prices rather than increased demand [10]. - The company is facing challenges with declining volumes and market share, which raises concerns about long-term revenue growth and sustainability of dividends [8][11].