10 Best Dividend Aristocrats with Over 3% Yield

1. Altria Group, Inc. (NYSE:MO)

Dividend Yield as of July 17: 8.02%

An American manufacturing company, Altria Group, Inc. (NYSE:MO) tops our list of the best dividend aristocrat stocks. The company specializes in the manufacturing and production of cigarettes, tobacco, and other nicotine products. The tobacco industry has enjoyed steady profits thanks to the persistent smoking habit among people. Despite a long-term decline in smoking rates in the US, the industry’s pricing power has sustained its cash flow for years. Altria Group, Inc. (NYSE:MO), which owns Marlboro—the leading cigarette brand in the country—holds around 42% of the total retail market and dominates 60% of the premium segment. In the first quarter of 2024, the company reported a revenue of $4.7 billion, a slight decrease of 0.9% compared to the same period last year.

In June, the FDA approved the marketing of four of Altria Group’s, Inc. (NYSE:MO) e-cigarette products following a detailed scientific review. This decision is significant because it marks the first time the agency has granted marketing orders for non-tobacco flavored vapor products through the premarket tobacco application process. The FDA noted that evidence from the company demonstrated these menthol-flavored products provide substantial benefits for adult smokers by encouraging them to completely switch from traditional cigarettes, which outweighs the risks, including the potential appeal to youth.

Altria Group, Inc. (NYSE:MO), one of the best dividend aristocrat stocks on our list, has been rewarding shareholders with growing dividends for the past 54 years. The company currently pays a quarterly dividend of $0.98 per share and has a dividend yield of 8.02%, as of July 17.

Insider Monkey’s database of Q1 2024 showed that 38 hedge funds owned stakes in Altria Group, Inc. (NYSE:MO), compared with 42 in the previous quarter. These stakes are collectively valued at over $823.3 million.

While we acknowledge the potential of MO as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued dividend stock that is more promising than MO but that trades at less than 7 times its earnings and yields nearly 10%, check out our report about the dirt cheap dividend stock.

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Disclosure: None. This article is originally published at Insider Monkey.