Is Altria's 7.4%-Yielding Dividend Safe?

Core Viewpoint - Dividend stocks, particularly those with high yields, are attractive to investors as interest rates decline, but sustainability of these dividends is a significant concern [1][2]. Company Analysis - Altria Group (NYSE: MO) offers a high dividend yield of 7.4%, significantly above the S&P 500 average of 1.1%, raising questions about the safety of this yield [3]. - Altria has a strong history of dividend payments, having increased its dividend 60 times over 56 years, qualifying it as a Dividend King [5]. - Despite its impressive dividend history, past performance does not guarantee future dividend growth, necessitating a broader evaluation of the company's prospects [6]. Growth Concerns - Altria faces challenges with growth, as stagnant or declining earnings can hinder its ability to maintain and grow dividends while investing in operations [7]. - The company's attempts to diversify into oral tobacco products have not yielded significant results, and declining smoking rates raise concerns about its long-term viability [8]. - While Altria has maintained its dividend for decades, recent struggles in revenue growth highlight the importance of considering future prospects when investing in dividend stocks [9].