Is Altria Group Stock a Buy Now?
If done with caution and due diligence, investing in ultra-high-yield dividend stocks can be a great way for investors to turbocharge their passive income. But it is very important to emphasize the first part of that statement because many such stocks are yield traps, with their payouts at great risk of being cut.
The tobacco giant Altria Group (NYSE: MO) offers shareholders an outsize dividend and a track record as a Dividend King. But should income-seeking investors buy the stock? Let's explore Altria's fundamentals and valuation to see if an answer can be found.
When investors think about Altria Group, they probably envision a business that is predominantly dependent on the sale of cigarettes for most of its revenue and profits. Since the company derived approximately 90% of its $25.1 billion in 2022 revenue from smokable brands like Marlboro cigarettes and Black Mild cigars, this assessment is accurate.
Source Fool.com
