2023-11-08 08:49:00 ET
Investors looking for high-yield stocks may be attracted to Altria 's (NYSE: MO) massive 9.6% dividend yield. With 14 consecutive years of annual dividend increases backing that yield, it would seem that it was a safe income stream. Don't count on it. There's a big problem with Altria's business, and a subtle wording shift in the current quarter's earnings release should be very troubling to investors.
It should be no surprise to anyone that smoking cigarettes is not a healthy life choice. Cancer is the big illness that gets most of the attention, but there are plenty of other problems that crop up as well, including emphysema, now more commonly called COPD (chronic obstructive pulmonary disease). But nicotine is additive and people continue to smoke despite the health risks.
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Is the Tide Turning for High-Yield Altria Stock?