Why Altria's Dividend Is Sustainable

Mario Tama Altria (NYSE:MO) shares performed well for nearly a decade after the spin-off of Philip Morris International in March 2008. The stock appreciated, and the dividend continued to grow at a nearly double-digit rate. An attractive and growing yield has always been one of the primary reasons to buy tobacco stocks, distributions that are fueled by a business that is a little capital-intensive and generates substantial free cash flows. More and more, these dividends can be seen as compensation for s ...