Here’s How Many Shares of Altria Group You Should Own to Get $1,000 in Yearly Dividends
The tobacco powerhouse may be a slow grower, but it’s also going to remain a cash cow for a long time.
Need dividend income? You can’t do much better than tobacco giant Altria (MO 1.80%). Not only has it paid a dividend like clockwork every quarter for decades now, it has raised its per-share payout every year for the past 55 years. Indeed, in four of those years, Altria raised its quarterly dividend payment twice.
But this recommendation also raises a question: How much Altria stock would you need to own to collect, say, $1,000 worth of dividend income from this name in 2025?
Reliable dividends (and growth) up until now
Based on its current quarterly payment of $1.02 per share, 245 shares of this ticker would do the trick. This number will presumably be changing before the year comes to a close, of course. That’s because Altria’s dividend increases are typically announced in August, taking effect for its September and December quarterly payments. But, without knowing how much of an increase awaits (and not being able to outright guarantee a 56th annual payout increase is in the cards for 2025), we’re only able to come up with such a number based on known, current data.
For what it’s worth, though, the average yearly growth in Altria’s quarterly dividend since 1989 has been a little over 6.5%. Its most recent increase, announced in August of last year, was just under 4.1%.
Sure, there may come a time when Altria — parent to U.S. cigarette brands like Marlboro and Virginia Slims — is simply no longer able to continue growing its dividend payment. Eventually, it may not even be able to maintain its payouts. One of the company’s self-chosen business mottos is “Moving beyond smoking,” in fact, acknowledging that the global smoking-cessation movement is indeed getting traction, while demand for its smokeless alternatives is proving modest.
That day is years down the road, though, as the war on tobacco is an incredibly slow-moving one, and is being largely offset by sheer population growth. This stock’s solid forward-looking dividend yield of 7.1% is based on payments that should remain relatively reliable well into the foreseeable future.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
