Altria's 9% Dividend Yield Isn't the Most Important Investment Factor. This Is the One Investors Should Watch
It is very easy to lose sight of the most important details when there's one detail that stands out in a huge way. For example, the income you could generate by adding ultra-high-yield Altria (NYSE: MO) to your portfolio is very alluring, given its incredibly high 9% dividend yield. But for long-term income investors trying to live off the cash their portfolios generate, buying Altria for its yield could end up being a bad decision. Here's why.
To put it simply, the biggest reason to like Altria today is its huge 9% dividend yield. The dividend has been increased for years, so management clearly understands that its shareholders want income. In fact, the entire business model is currently geared toward paying that dividend. That's a big problem if your holding period is measured in decades.
Image source: Getty Images.
Source Fool.com
