Looking for Reliability? This 7.3%-Yielding Dividend Stock Has Been a Model for Dependability Over the Decades.
AltriaAltria(US:MO) The Motley Fool·2025-11-19 10:20

Core Viewpoint - Altria Group's stock has recently declined due to disappointing earnings, but it remains a potential buy for long-term investors focused on dividend growth [2][3]. Stock Performance - As of November 17, 2025, Altria's stock (MO) was trading at approximately $58, down from around $67 in early October, primarily due to a 1.7% revenue drop in Q3 and lower Marlboro shipments [3][4]. - The stock has shown some recovery from a recent low of $56, with current prices consolidating around $58, attracting interest from income investors [4]. Dividend History - Altria has increased its dividend for 56 consecutive years, making it part of the elite Dividend Kings list, which includes companies that have raised dividends for 50 years or more [5]. - The company currently offers a forward dividend yield of 7.3%, appealing to younger income investors with longer investment horizons [6]. Valuation Metrics - Altria's price-to-earnings ratio stands at 12.6, indicating that the stock is relatively cheap compared to its earnings [7]. - Despite a decline in annual revenue from $26 billion in 2020 to $24 billion in 2024, the company's bottom line has increased by 144%, from $4.5 billion to $11 billion during the same period [9]. Dividend Payout Ratio - The company's dividend payout ratio is around 76%, which is considered high and may limit reinvestment opportunities in the business [10]. Analyst Consensus - A consensus among 15 analysts rates Altria's stock as a "hold," with a high target price of $72, suggesting a potential upside of 24% over the next 12 months [11]. - Overall, Altria presents a high yield, low valuation, and a strong track record of delivering shareholder value, making it a potential entry point for long-term dividend growth investors [11].