12 Best Stocks to Buy Now for Passive Income

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3. Altria Group, Inc. (NYSE:MO)

Number of Hedge Fund Holders: 54

Altria Group, Inc. (NYSE:MO) is an American company that specializes in the production and marketing of tobacco and related products. The company has seen sales volumes drop as smoking rates decline in the US, but the addictive nature of tobacco gives it pricing power that helps maintain steady cash flow. While relying on price hikes isn’t a long-term solution, it provides the company with time to develop new revenue sources, including smokeless and non-tobacco products.

Altria Group, Inc. (NYSE:MO)’s free cash flow comfortably covers its dividend. Over the past year, free cash flow per share reached $5.16, which exceeds the $4.24 per share it plans to pay out in dividends over the next year.

Due to this strong cash generation, Altria Group, Inc. (NYSE:MO) was able to raise its dividends 60 times in a row in the past 56 years. The company offers a quarterly dividend of $1.06 per share and has a dividend yield of 6.65%, as of September 22.

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