Altria Group: the S&P 500 dividend leader with a yield of almost 8%

Altria Group $MO has become the most attractive dividend stock in the S&P 500 index, thanks to a yield of nearly 8%. This status was reinforced by pharmaceutical giant Walgreens Boots Alliance's decision to suspend dividend payments, which shifted investor attention to Altria and other stable dividend payers.

Key information about Altria

Long-term dividend growth:

-Altria $MO has been increasing its dividend continuously for nearly 60 years.

- Last increase in August 2024 of 4.1%.

- The company plans to continue growing the dividend through 2028.

Strong payout ratio:

- Current payout ratio of ~80%, more than double the average of the S&P 500.

- Still, management confirms that the dividend remains the number one priority.

Stable cash flow:

-In 2023, Altria $MOreturned over $10 billionto investors through dividends and share buybacks.

- A strong balance sheet allows the dividend to be sustained and continue to grow even in a more challenging economy.

Current valuation and growth potential:

-Shares of $MO are trading around $52.

- With a stable dividend and strong financial position, it remains an attractive stock for conservative, income-focused investors.

Other strong dividend stocks in the S&P 500

Altria $MO isn't the only stock with a superior dividend yield. Other notable dividend titles with yields of 6.5%-7.1% include:

- Crown Castle (CCI)

- LyondellBasell Industries (LYB)

- Dow Inc. (DOW)

- Verizon Communications (VZ)

- Pfizer (PFE)

Summary

For dividend investors, Altria is one of the most reliable titles in the market thanks to:

A long history of dividend growth

High yield of nearly 8%

Strong financial position and high cash flow

In the context of market uncertainty and the Walgreens dividend break, Altria appears to be one of the best dividend titles in the S&P 500.