20 Best Dividend Growth Stocks with High Yields

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

Dividend Yield as of May 13: 7.21%

Altria Group, Inc. (NYSE:MO) is a Virginia-based tobacco company that produces a variety of cigarette and nicotine-related products. As smoking rates have declined, the company has relied on price increases to maintain its revenue base—a strategy that was evident in its first-quarter performance. While total cigarette shipment volumes dropped by 13.7%, the Marlboro brand saw a 13.3% decline, other premium brands fell by 9.2%, and discount brands experienced a steep 24.9% drop. Cigar shipments also edged down by 2.9%.

Despite these volume declines, Altria Group, Inc. (NYSE:MO)’s smokeable products segment delivered growth in adjusted operating income, supported by Marlboro’s strong contribution. In the oral tobacco segment, the on! brand continued to build momentum, with Helix investing strategically to enhance its market position. Altria generated $4.5 billion in revenue during the quarter, a 4.2% year-over-year decline that came in below analyst expectations by $96.2 million.

Nonetheless, Altria Group, Inc. (NYSE:MO) remained committed to shareholder returns, distributing $1.7 billion in dividends during the period. The company also maintained a solid liquidity position, closing the quarter with $4.7 billion in cash and cash equivalents. It offers a per-share dividend of $1.02 every quarter and has a dividend yield of 7.2%, as of May 13. The company is a Dividend King with 55 consecutive years of dividend growth under its belt.

Overall, Altria Group, Inc. (NYSE:MO) ranks first on our list of the best dividend growth stocks with high yields. While we acknowledge the potential of MO as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than MO but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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