The one number that likely stands out for income investors when they see Altria (NYSE: MO) is the stock's huge 9.37% dividend yield. That dividend, meanwhile, has been increased annually for 54 consecutive years. For investors looking to maximize their passive income stream, this may seem like a slam dunk.

It isn't, though, and you should monitor Altria's progress very carefully if you buy it, or you might end up with an unpleasant surprise.

To be fair, there's no particular reason to think Altria's dividend is at risk of being cut over the near term. That's true even though the payout ratio is roughly 100%. Payout ratio compares dividends to earnings, but dividends actually come out of cash flow, not earnings. Altria's cash dividend payout ratio, which compares dividends to cash flow, is a more reasonable 80% or so. The number has been fairly consistent over the past decade.

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Source Fool.com