1. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of December 3: 7.12%
Altria Group, Inc. (NYSE:MO) is an American tobacco company that manufactures a wide range of related products including cigarettes and other nicotine products. The tobacco industry is known for its exceptional resilience, arguably more so than most other sectors. Altria’s primary focus is on selling traditional cigarettes within the US market. Its role in the cigarette industry is particularly noteworthy, as it operates exclusively in North America and holds control over Marlboro, the leading cigarette brand in the region. The company’s dominant market position provides significant advantages, including the ability to implement price increases more effectively, which helps counteract declining sales volumes. Since the start of 2024, the stock has surged significantly by nearly 37%.
In the third quarter of 2024, Altria Group, Inc. (NYSE:MO) reported revenue of $5.34 billion, which showed a modest growth of 1.1% from the same period last year. The company reported strong income growth in its smokeable products segment, driven by the continued strength of the Marlboro brand. In the oral tobacco products segment, its MST brands contributed to profitability, while the on! product maintained market momentum. Additionally, the company introduced its “Optimize & Accelerate” initiative, aimed at modernizing operations and advancing its strategic goals. Altria also reaffirmed its 2024 adjusted diluted EPS guidance, projecting a range of $5.07 to $5.15, reflecting a growth rate of 2.5% to 4% compared to its 2023 base of $4.95.
In the third quarter, Altria Group, Inc. (NYSE:MO) paid $1.7 billion to shareholders through dividends, which shows the company’s commitment to its investors. Moreover, in the past 55 years, the company has raised its payouts 59 times, which makes it one of the best dividend kings on our list. It offers a per-share dividend of $1.02 every quarter and has a solid dividend yield of 7.12%, as of December 3.
At the end of Q3 2024, 32 hedge funds held stakes in Altria Group, Inc. (NYSE:MO), compared with 36 in the previous quarter, as per Insider Monkey’s database. These stakes are worth over $2.2 billion in total.
Overall, Altria Group, Inc. (NYSE:MO) ranks first on our list of the best dividend kings. While we acknowledge the potential for MO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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