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)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
Dividend Aristocrats and Kings tend to snag most income investors’ eyes with their consistent dividend payouts, proven-and-tested business o...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.