Should you buy this extremely high dividend yield in preparation for the market for disaster?

Altria Group encourages its dividends through its cigarette business.
The company is investing in new areas of the nicotine market.
The opposite of the Altria Group makes it a great balance for growth investor portfolio.
10 shares we like more than Altria Group ›

Investors are currently plagued by hypergrowth technology campaigns, especially everything related to artificial intelligence (AI). I think many readers have a major impact on these AI actions that have been huge winners over the last few years.

There is nothing wrong with distributing your portfolio for hypergrowth shares. However, if you are an older or more conservative investor, it can now be a great time to optimize your portfolio through all market cycles. Hypergrowth AI reserves increases during bull markets, but when the bear’s market (as 2022) is inevitable, they may crash. If you don’t like 50 percent. Or more or larger, more conservative dividend payment stocks may be for you.

One particularly high dividend fertility reserve, which so far has been in 2025, is Altria Group (NYS: MO); The tobacco and nicotine giant have dividends worth over 6%. Does it make a great stock you need to buy when preparing for a disaster on the market?

Altria owns brands such as Marlboro cigarettes, oral tobacco products, cigars and electronic nicotine wasp. It also has a great investment Anheuser Busch;

The use of cigarettes in the US – the main “Altria” market – is declining for years. Despite these decreases due to price increases, reducing costs and financing cigarette business finance, the company optimized its profit. This has led to consolidation of free cash flows in the company to grow 59% over the last 10 years and reached $ 8.7 billion in the last 12 months.

Altria is slowly investing in cigarettes in order to build your business for the future. Its cigar business is stable, and electronic wasps and nicotine bags continue to grow. It’s! The Nicotine Pouch brand reported last quarter of 26.5%. To further expand into new nicotine categories, Altria has just collaborated with KT & G Corporation from South Korea to experience new nicotine bag brands and energy investments. It is too early to say what the impact of this partnership will be, but it shows where the altria is focused on the future of its activities.

Image Source: Getty Images.

Cigarettes are constantly providing Altria’s constant cash flow, reinforced due to prices. The stock dividend is now 6.27%, and dividends per share are growing steadily over the last 10 years, ie by 87.6%compared to that Timespan.

The company generates free cash flow per share – $ 5.15 compared to the current annual dividend per share – $ 4.24. This gap between free cash flows and dividend obligations should allow the company to continue to increase its dividend payment to shareholders, even starting by more than 6%. Along with the redemption of shares, which reduced unpaid shares and therefore facilitates the increase in dividends per share, the Altria has a clear path as to increase dividends per share over the next decade, as in the last.

MO dividend chart — MO dividend data ycharts.

Unlike other trendy businesses such as AI infrastructure investments that may experience a huge volatility of market disaster or downturn, tobacco business such as the Altria remains stable throughout the market. In fact, the volume of tobacco and nicotine use actually to improve When the economy is rude.

As a result, stocks are a great purchase to balance the Hypergrowth AI names portfolio. If you own a steady dividend campaign such as Altria, not only you get 6%+ back to your cash investment, you may have stock that works well when the market inevitably breaks down. This could give you a counterweight in your portfolio to use any DIPS.

If you are worried about too much AI growth stocks, the Altria Group can be perfect for extremely high dividend fertile stocks.

Before buying a Altria Group, consider this:

Motley Fool Stock Advisor A team of analysts just found what they think is 10 best stocks To buy investors now … and the Altria Group was not one of them. 10 stocks that reduced the incision can return the monster in the coming years.

Consider when Netflix This list consisted of 2004. December 17th … If you have invested $ 1,000 during our recommendation, at our recommendation, You would have $ 6507 in USD!* Or when Nvidia Made this list in 2005. April 15 … If you have invested $ 1,000 during our recommendation, at our recommendation, You would have $ 1,114,716!*

Now it is worth mentioning Share advisor The average return is 1 068%-S&P 500, compared to 190 percent. Share advisor;

See. 10 stocks »

*The stock advisor returns from 2025. September 29th

Brett Schafer has no position in any of the above shares. The Motley fool has no position in any of the above stocks. The Motley fool has a disclosure policy.

Should you buy this extremely high dividend yield in preparation for the market for disaster? initially released by The Motley Fool

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