How Much Will Altria Group Pay in Dividends This Year?

Cigarette smoking has been in decline for many years, however that hasn’t stopped Altria Group (NYSE: MO) from making heaps of dividend funds to glad shareholders. The corporate behind the main Marlboro model raised its quarterly payout 58 occasions over the previous 54 years.

In 2023, Altria distributed about $6.8 billion price of dividend funds. The inventory provides buyers a quarterly payout of $0.98 per share. At its current closing value of round $42 per share, buyers will obtain an ultra-high 9.3% yield even when the corporate would not elevate its payout.

Altria Group often proclaims quarterly payout raises in August. It is nonetheless too early to know precisely how a lot the corporate will distribute in 2024, however we are able to actually anticipate its 54-year streak to proceed.

How Altria might hold elevating its dividend payout

Folks aren’t sparking up cigarettes as typically as they used to, however nicotine consumption within the U.S. continues to be trending upward at roughly the tempo of inhabitants progress. Altria’s first try and transition people who smoke to e-vapor gadgets hit a serious roadblock in 2020 when the U.S. Meals and Drug Administration (FDA) banned flavored e-cigarettes.

Regardless of promoting 9.9% fewer cigarettes, the corporate reported complete income, web of excise taxes, that fell by simply 0.9% final 12 months. By controlling prices and repurchasing shares, Altria was in a position to elevate adjusted earnings by 2.3% in 2023.

Altria’s inventory value has been below stress as a result of the corporate’s dropping market share to Elf Bar and different illicit e-vapor merchandise. The aggressive risk is not going away, but it surely might start to subside. Growing enforcement of the flavour ban, plus the current launch of its new e-cigarette model NJOY, will greater than doubtless assist complete gross sales return to progress.

Must you make investments $1,000 in Altria Group proper now?

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Cory Renauer has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage.

How A lot Will Altria Group Pay in Dividends This Yr? was initially printed by The Motley Idiot

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