Altria is one of only three companies in the S&P 500 Index whose total shareholder return has exceeded the S&P 500’s return every year for the last 12 years.
Since the spin-offs of Philip Morris International and Kraft in 2008, Altria has increased its dividend six times. The stock’s dividend has grown at a compound annual growth rate of more than 8% over the last four years. Altria’s management has targeted a payout ratio of roughly 85% of earnings going forward. Through a combination of increasing revenues and cost controls, it would be reasonable for investors to expect dividend growth in the range of the mid-to-high single digits. Considering Altria’s current yield of almost 5.5%, Altria will provide investors a compelling mix of a high current yield and solid dividend growth for many years to come.
The article Altria Is Still the Dividend King originally appeared on Fool.com.
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