You Can Count on This Stock's 8% Yield
Dividend stocks with high yields can sometimes indicate a risky stock. Tobacco company Altria Group (NYSE: MO) fits that bill; its dividend yield of more than 8% is much higher than most other stocks pay.
But sometimes, there are exceptions to the rules, and Altria could be one. Here is why investors looking for a reliable income stream can feel good about Altria's dividend payout.
Mature companies pay dividends to return value to shareholders when there are no better uses for their free cash flow. They have profitable business models and are past their hyper-growth phase, no longer needing to invest in taking market share in their industry.
Source Fool.com