Is High-Yield Altria Stock Worth the Accelerating Risk Profile?
The S&P 500 index has a paltry 1.2% dividend yield. The average consumer staples stock has a yield of 2.7%. Consumer staples maker Altria (NYSE: MO) has a dividend yield of 7.4%. If you are a dividend-focused investor, Altria's high yield will probably catch your attention. But is it worth buying into that lofty yield?As noted, Altria is a consumer staples company. That means that it makes products that consumers buy regularly regardless of the economic environment. However, there's a slight difference between Altria and most other consumer staples makers. A company like Procter & Gamble makes toiletries and paper goods. A company like General Mills makes food. These are life necessities. Altria's primary product is cigarettes.Image source: Getty Images.Continue reading
The S&P 500 index has a paltry 1.2% dividend yield. The average consumer staples stock has a yield of 2.7%. Consumer staples maker Altria (NYSE: MO) has a dividend yield of 7.4%. If you are a dividend-focused investor, Altria's high yield will probably catch your attention. But is it worth buying into that lofty yield?
As noted, Altria is a consumer staples company. That means that it makes products that consumers buy regularly regardless of the economic environment. However, there's a slight difference between Altria and most other consumer staples makers. A company like Procter & Gamble makes toiletries and paper goods. A company like General Mills makes food. These are life necessities. Altria's primary product is cigarettes.
Image source: Getty Images.
