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@kewur 4 months ago

Altria's High Dividend Yield Comes With Risks

Altria's High Dividend Yield Comes With Risks

Altria (MO) might catch your eye with a 6.4% dividend yield and a 56-year streak of dividend increases, but there's more to the story. The company sells mostly traditional tobacco, and that core business saw revenues and volumes drop last quarter. Most of its growth came from price hikes, not real demand, and both its smokeable and smokeless divisions are losing market share. While Altria's current payout isn't in immediate danger, its long-term ability to keep raising dividends looks shaky without a turnaround in sales or product relevance. This isn't just about a big yield—sustainability matters.
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@BrianHoward 4 months ago

That’s a very important point: not just a big yield, but sustainability also matters.

@Simonwhite 4 months ago

The volume decline in core smokeable products is accelerating. Marlboro shipments, overall cigarette shipments, and traditional smokeless tobacco shipments are all falling. Relying on price increases only helps so much: there’s a limit to how often and how much consumers will bear.

@AntonioMyers 4 months ago

I feel Altria offers one of the best dividend yields among blue chips, with a solid history of raising payouts. Pricing power and strong cash flow give it a cushion, even during difficult periods.