2 Reasons for Smart Investors to Avoid High-Yield Altria
If you are a dividend investor, there are some very prominent facts that should attract you to Altria (NYSE: MO). For example, the company has an ultra-high 8.8% dividend yield, and the dividend has been increased annually for more than a decade (the most recent hike was announced at the end of August).
But smart investors that have long time horizons should consider at least two concerning issues about Altria before they buy.
Altria's biggest brand is Marlboro. Its biggest product is cigarettes. That information should be enough to turn off investors with an ESG bent, given how dangerous smoking is to human health. But this issue is bigger than investment preferences. There is a broad societal shift away from smoking. Since smokable products make up roughly 88% of the company's revenue, most of which is cigarette-related, this is a very big deal.
Source Fool.com
