What Altria Group's Latest Dividend Increase Really Means for Investors

Altria Group (NYSE: MO) has been one of the best long-term investments in the stock market. For more than half a century, the tobacco giant has overcome huge obstacles to deliver consistent share price increases to its shareholders, and it has also made dividend growth a priority.

Late last month, Altria continued its past practice of increasing its dividend on an annual basis, extending a streak that goes back nearly 50 years. Altria's latest move highlights the success that the tobacco giant has enjoyed even as a secular decline in cigarette smoking has resulted in falling sales volumes and threatened the long-term business model that Altria and its peers have used for decades. In particular, the optimism that Altria keeps showing with its capital return policies reflects the company's ability to keep making the most from its business even under sometimes difficult conditions in the industry.

Altria's press releases about dividend increases are typically terse, and this year's installment was no exception to that rule. The tobacco company's board of directors voted to increase the quarterly dividend by $0.05 per share, or just over 8%, to $0.66 per share. Shareholders as of the middle of September can expect to receive the larger payment in early October.

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Source: Fool.com