5 Most Popular Dividend Stocks on Robinhood

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

Dividend Yield: 6.82%

Altria Group, Inc. (NYSE:MO) manufactures and sells cigarettes, oral tobacco products, and wine in the United States. Perhaps you will recognize the company by one of the names we all know and see everywhere, Marlboro. The company has a track record of 52 years of consecutive dividend hikes, making it stand tall among other dividend kings.

Here is what Broyhill Asset Management has to say about Altria Group, Inc. in its second-quarter 2021 investor letter:

“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.

MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”