MO - High-Yield Altria Stock Rose With the Market in the First Half of 2024 but Don't Get Too Excited for the Rest of the Year
2024-07-06 04:14:00 ET
Dividend investors often get so enamored of a high yield that they overlook a company's underlying problems. That is quite possibly what happened with Altria (NYSE: MO) in the first half of 2024, a period in which the stock rose 13%, roughly matching the gain of the broader market. The thing is, Altria's most important business, its deeply troubled cigarettes operation, isn't likely to have seen a material change in direction in the first half.
Altria's dividend yield is a huge 8.5% today. It was higher than that at the start of 2024, when the stock price was nearly 15% lower. A huge yield is the big attraction for most investors with this stock. Notably, the dividend has been increased regularly so there's a trend here that suggests the dividend is strong. And, in fact, there's no reason to believe the dividend is at risk of a cut in the near term.
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High-Yield Altria Stock Rose With the Market in the First Half of 2024, but Don't Get Too Excited for the Rest of the Year