Though Altria Group (NYSE:MO) operates in the challenging U.S. tobacco industry, thanks to cigarette volume remaining in secular decline, the company controls roughly 50% of the U.S. cigarette market and continues to dish out a dividend yield of nearly 4%. However, despite the challenging market, the company's addictive products provide the company with strong pricing power that should keep Altria's cigarette business lucrative in the near term. If Altria isn't your style, three Foolish contributors offer strong dividend stocks that should have brighter futures than Altria.
Altria may have this company beat in terms of dividend yield, but in terms of long-term dividend potential, I don't think Altria can hold a candle to Microsoft (NASDAQ:MSFT). Microsoft is reinventing itself as a giant in cloud-based services, and its Office-anywhere approach is solidifying its de facto standing as the dominant player in productivity software. AbbVie Inc (NYSE:ABBV) has a dividend yield similar to Altria, currently sitting at about 3.8%, but its future seems much brighter. AbbVie has a trump card in the form of an immunology drug named Humira, which is going to drive very strong cash flows for the company despite its patent ending at the end of 2016. Altria may boast a solid 3.7% annual dividend yield, but I think Nike (NYSE:NKE) offers a much healthier combination of dividend growth and potential share price appreciation -- not to mention the stark contrast of Nike's exercise-centric products against those of the tobacco giant.
Source: Motley Fool
Related Articles:
- 3 Styles Of Successful Dividend Investing
- Why Dividend Growth Stocks Are Evil
- Building Yield: 7 Consumer Goods Dividend Stocks
- 9 Higher-Yielding Financial Services Stocks With Rising Dividends
- Dividend Stocks vs. a Safe Distribution Rate
Forget Altria, These Are the Best Dividend Stocks to Own
Posted by D4L | Monday, December 28, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
The fact is that there are many interesting high-yielding companies that have good long-term prospects. Besides, as the markets get more vol...
-
Dividend stocks are very appealing to investors, for good reason. Growth stocks tend to make the headlines — with the 2020 pandemic, shareho...
-
Part of the joy of investing is seeing your good investments continue to grow, years after your initial purchase. Aside from the financial s...
-
A common measure of dividend sustainability is the payout ratio, the percent of earnings that are paid out to shareholders. Unfortunately, e...
-
Investors looking for the best dividend stocks for 2021 and beyond should take a closer look at the stocks with the longest histories of ann...
-
Some investors — usually referred to as income investors — specifically set out to buy securities that pay them even before stock price appr...
-
Are you looking for a great dividend stock to add to your portfolio? There are many options out there, but the reality is that many just don...
-
A lot changes when you shift from working to retirement, including how you invest. Most investors switch from building a nest egg to living ...
-
Last month we wrote about the top four companies in our model portfolio in the article 4 Dividend Dominators for 2021 - Companies With More ...
-
This stock yields 7.07% and pays monthly. It's selling at a -6.4% discount to NAV - much deeper than its three- and five-year average di...

0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.