We recently released a list 20 Best Dividend Growth Stocks High Yield. In this article, we will explore Altria Group, Inc. (NYSE:MO) Position against other best dividend growth stocks.
Due to its long-term advantages, dividend stocks for investors have been growing in popularity. According to Jeremy Zirin, who leads the U.S. equity team at UBS Asset Management, companies with a record of sustained dividends are a wise choice for investors looking for a balanced approach in the current market environment. Investors tend toward high-yield dividend stocks when markets fell in April after President Donald Trump announced new tariffs. But the market resumed as trade tensions began to ease and negotiations progressed. Stocks soared particularly after the U.S. and China agreed to temporarily lower tariffs. He made the following comments on dividend stocks:
“When the market is really volatile and down, higher production strategies tend to be better, but if there is more cut, more volatility and potential upside…you don’t want to be overly defensive.”
Historically, companies that continue to increase their dividends tend to deliver higher returns than broader markets, including benchmarks such as S&P, such as weight indexes. According to a report by Guggenheim, from May 2005 to December 2024, the average annual rate of return for companies that initiate or increase their dividends is 10.5%. Companies that cut or suspend spending, by comparison, report only 5.5% per year. The overall market returned 10.4% during this period, slightly lower than dividend growers. The report also highlights that dividend growth strategies have historically performed well in both rising and falling markets, making them an attractive option for investors focused on long-term growth and downside protection.
Growth in global dividend payments has been slowing since the recovery after recovery, but this trend reversed last year, according to a report from S&P Global. In 2024, growth unexpectedly accelerated to 8%, with shareholder revenue increasing by about $180 billion from the previous year. This growth is surprising given the ongoing geopolitical and economic challenges. The report also highlighted that several sectors and regions have seen record dividend initiatives, including the U.S. technology, media and telecommunications (TMT) sector, banks in Italy and Spain, the automotive industry in Japan, and the overall increase in payments in mainland China. Even with extremely high bid volatility, dividend payments in the oil and gas sector remain strong. Looking ahead, the report shows that this high dividend is likely to remain stable, with global spending expected to remain $2.3 trillion in 2025.
As investors demand dividend payments stocks, many companies responded by gradually increasing dividend spending. A report by Janus Henderson shows that global dividend payments hit a record $1.7.5 trillion in 2024, reflecting a 6.6% base. The overall growth rate is 5.2%, which is slightly lower due to the special one-time dividend decline and the higher dollar effect. Among the 49 countries covered in the report, including major economies such as the United States, Canada, France, Japan and China, this is a record dividend level. A total of 88% of companies raise or keep their dividends stable over the course of the year.
Close-up of assembly line mixed with tobacco products.
For this list, we filtered dividend stocks with yields above 3% as of May 13. From this group, we further refined our selection criteria by determining stocks with dividend growth streaks over 10 years or more. These stocks are ranked in the rising order of their dividend yield.
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As of May 13: 7.21%
Altria Group, Inc. (NYSE:MO) is a Virginia-based tobacco company that produces a variety of cigarettes and nicotine-related products. As smoking rates declined, the company relied on rising prices to maintain its revenue base, a strategy that was evident in its first quarter performance. Although total cigarette shipments fell by 13.7%, Marlboro brands fell by 13.3%, other premium brands fell by 9.2%, and discount brands fell by 24.9%. Cigar shipments also dropped by 2.9%.
Despite these numbers, Altria Group, Inc. (NYSE:MO)’s smoked products sector supports adjusted operating income growth in Marlboro’s strong contribution. In the Oral Tobacco segment, open! Brand continues to build momentum, and Helix invests strategically to improve its market position. Altria generated $4.5 billion in revenue in the quarter, down 4.2% year-on-year, lower than analysts' expectations of $96.2 million.
Still, Altria Group, Inc. (NYSE:MO) remains committed to shareholder returns, distributing $1.7 billion in dividends during this period. The company also maintained a solid liquidity position, ending the quarter with $4.7 billion in cash and cash equivalents. As of May 13, it was offering a quarterly dividend of $1.02 per quarter with a dividend yield of 7.2%. The company is the dividend king, with dividend growth for 55 consecutive years.
Overall, Missouri Ranked first On our list of best dividend growth stocks. Although we acknowledge the potential of MO as an investment, our belief lies in the belief that certain undervalued dividend stocks have greater hope to offer higher returns and do so in a shorter time frame. If you are looking for an undervalued dividend stock that is more promising than MO, but its earnings are traded 10 times a year and grows at double-digit rates each year, check out our report Dirt cheap dividend stocks.
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Disclosure: None. This article was originally published in Inside monkey.