U.S. tobacco giant Altria Group (MO) has raised its dividend for the 55th consecutive year, taking its yield up to nearly 8% and making it one of the highest dividend rates in the S&P 500 index.
The company behind Marlboro cigarettes announced that it is lifting its quarterly dividend payment by 4.1% to $1.02 U.S. per share.
The latest increase boosts the dividend yield on Altria’s stock to 7.9%. The average dividend yield among companies listed on the benchmark S&P 500 index is currently 1.32%, according to data from Y Charts.
Altria has long been a dividend powerhouse and typically pays out 80% of its earnings to shareholders. The company’s distribution has risen at a 4% annual rate since 2018.
Altria, the largest tobacco company in the U.S., prioritizes dividend payments to shareholders over stock buybacks.
Altria is one of only a few companies in the S&P 500 index that has raised its dividend for more than 50 consecutive years, making it a “Dividend King.”
The stock of Altria Group has risen 20% over the last 12 months and is currently trading at $51.83 U.S. per share, near a 52-week high.
