2024-03-11 11:58:55 ET
Summary
- Altria Group stands out as a company with a high dividend yield of over 9% and a history of increasing dividend payments.
- Concerns arise due to the company's high payout ratio of 80%.
- Despite being in a "dying industry," Altria has maintained solid free cash flow growth rates and aims to deliver consistent dividend growth.
Introduction
It's hard not to love big dividend payments. But the vast majority of companies that have 8%+ dividend yields typically have a hard time sustainably growing those dividend payments over time, and most never grow their dividends at all. In fact, it's pretty common to see high-yielding stocks reduce their dividend payments over time, as it can be difficult for companies to generate enough free cash flow to cover their dividend payments....
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For further details see:
Altria: Sustainable Big Dividends But Will Likely See Low Levels Of Price Appreciation