Investors around the world are feeling some pain. But periods of turmoil like this also generate significant opportunity to put capital to work. Valuations across most sectors have fallen, which increases the margin of safety for buyers of shares today. It also increases the likelihood of capital gains.
At the same time, dividend stocks now sport higher yields, as the yield of a stock and its price move inversely. In fact, the list of high-dividend stocks continues to grow as the market sells off, and it now includes some truly great dividend stocks, let’s look at three high-yield stocks for long-term income:
Smoking Hot: Altria Group
Altria (MO) is primarily a manufacturer and distributor of smokeable and other tobacco products in the U.S. The company owns the highly lucrative Marlboro brand, as well as Black & Mild cigars and pipe tobacco, moist smokeless tobacco brands such as Copenhagen and Skoal. In addition to those traditional tobacco products, Altria’s portfolio has On! oral nicotine pouches, and a large stake in Juul vaping products.
The company, which was founded in 1822, is trying to diversify away from tobacco products and aims to become a smoke-free company in the years to come. To facilitate this, it has taken large stakes in Juul, as well as Cronos Group. Altria produces about $21 billion in annual revenue, and trades with a market cap of $77 billion.
Altria has an exemplary history of dividend increases, which stands at 52 consecutive years. That makes Altria a Dividend King, having boosted its payout for at least 50 consecutive years. The defensive nature of tobacco products means that Altria naturally has recession resistance built into its dividend. That has helped the company with dividend safety and growth in the past, and we believe will continue to do so for the foreseeable future.
Altria’s average annual dividend increase in the past decade is quite strong at 7.8%. For a defensive company with a half-century of dividend increases, it is all the more impressive. While we don’t see that sort of pace as sustainable,…