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Balance is key to success in any endeavor, but it’s essential to passive income investors. Finding the right mix of affordability, reliability, dividend yield and potential upside is never easy. Although every investor may have a different “Goldilocks zone,” Altria Tobacco might have near-universal appeal. Keep reading to discover how to earn $1,000 in passive income off this dual dividend king-dividend aristocrat paying a chunky 7.46% dividend.
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Altria (NYSE:MO) is one of the world’s largest tobacco companies, meaning it has a large market share of a product in high demand around the globe. Altria’s family of brands includes some of the world’s most recognizable tobacco makers, such as Philip Morris (maker of Marlboro cigarettes) and John Middleton, the company that makes Black and Mild Cigars.
Altria also operates in the smokeless tobacco sector, where its subsidiary, the U.S. Smokeless Tobacco Company, produces iconic brands such as Skoal and Copenhagen. According to the company’s website, Altria’s roots stretch back almost 200 years and it’s taking proactive steps to ensure they last 200 more. In addition to its traditional tobacco products, Altria has taken a leading role in producing tobacco alternatives like nicotine pouches and e-vapor products.
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Altria’s long history and control over many of the tobacco industry’s most iconic brands have helped it achieve an impressive market cap of $92.88 billion (per Benzinga). If that weren’t impressive enough, Altria has proved itself an extremely reliable dividend stock. Public filings show that Altria has increased its dividend for 56 consecutive years. This has earned Altria the rare honor of being a dual dividend king and dividend aristocrat.
Altria performed well enough in Q3 2024 to announce a 4.1% dividend increase. It’s a safe bet that the announcement was welcome news for all Altria shareholders. Benzinga estimates Altria’s current dividend to be 7.35%, the highest dividend payout by percentage of all the 2024 dividend kings (per SureDividend). More importantly, Altria looks well-primed to continue performing for investors. It has a strong market share, a diverse product line and effective leadership.
