1 Ultra High-Yield Dividend Stock to Buy and 1 Trap to Avoid

Group 1: Altria Group Inc. (MO) - Altria Group has a dividend yield of 6.5% and has increased its dividend 60 times over the past 56 years, making it an attractive option for dividend investors [5][6] - Despite a declining cigarette volume market, which saw a 6% annual decline from 2019 to 2024, Altria continues to generate strong cash flow and expanding margins [4][9] - The U.S. tobacco market remains stable at around $90 billion, allowing for price increases that can offset volume declines, positioning Altria for potential growth [6][10] Group 2: Conagra Brands (CAG) - Conagra Brands primarily operates in the U.S. frozen food market with well-known brands but faces challenges due to lower investment in product development and marketing [12][14] - The company's previous acquisition strategy has not yielded positive results, as evidenced by the divestment of Ralcorp at half the purchase price [13] - Conagra's focus on brand building is commendable, but without significant investment in marketing and innovation, it risks falling behind competitors in a highly competitive market [15][16] Group 3: Comparative Analysis - Altria is successfully expanding margins and increasing free cash flow, while Conagra struggles to invest in its brands, leading to stagnant growth [18][19] - The contrasting performance of these two companies highlights that not all dividend stocks are equally positioned for long-term success [18]