2024-06-08 10:00:00 ET
Tobacco stocks have long been popular among income investors. Few industries have had the same luxury of selling a recession-proof product at wide profit margins, which has allowed tobacco companies to return much of their profits to investors in the form of dividends.
Altria (NYSE: MO) certainly fits the bill here, and the stock had an incredible run of almost 50 years. Through 2014, it delivered an average annual total return of 20.6%, according to Wharton professor Jeremy Siegel. That's on par with Warren Buffett's long-term track record as the head of Berkshire Hathaway .
The domestic Marlboro parent has struggled in the past decade, but it remains an appealing dividend stock with an 8.4% yield . At that level, you would have to invest just $11,900 in shares of Altria to earn $1,000 in annual dividend income.
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Want $1,000 in Dividend Income? Here's How Much You'd Have to Invest in Altria Stock