Prediction: This high-yielding dividend stock will pay more in 2024

24/7 Wall St. Perspectives

• Stocks that consistently increase their dividends offer investors huge potential for total return.
• Dividend stocks will become more popular as interest rates fall.
• Explore this free report today: access 2 legendary high-yielding dividend stocks that Wall Street loves.

High yield dividends stocks are preferred among investors for good reasons. They provide a steady stream of income and offer a promising path to total return. Total return is a comprehensive measure of investment performance that includes interest, capital gains, dividends and distributions realized over time.

For example, if you buy a stock at $20 that pays a 3% dividend and it goes to $22 in a year, your total return is 13%. That is 10% for share price growth and 3% for dividends paid.

On selection stocks for their portfolios, a critical consideration for growth and income investors is the safety and security of a company’s dividend and the prospect that the dividend will be increased regularly. We decided to analyze the top companies, looking for those that will increase their dividends not only this year, but also beyond.

We then narrowed down on our screen we’re looking for a high-yielding home run that’s likely to boost dividend payouts to shareholders in 2024, and we’ve found that a top company could have a dividend increase just around the corner. Investors looking for top dividend paying companies should take advantage of this free report today.

Altria has a rich heritage as a US company

One of the world’s the largest tobacco companies, Altria Group Inc. (NYSE: MO), sells and markets one of the world’s largest and most popular cigarette brands, Marlboro. The company noted this on its corporate website:

In 1929, when the leaders of Philip Morris & Co. selected Richmond, Virginia as their new manufacturing center, they did not realize that a focus on quality would help the company sell more than half of all cigarettes in the United States. Our focus on quality and consumers has helped us become a leader in the tobacco industry for over 40 years.

In 2003, Phillip Morris Companies is renamed

Known since then 1929 as Phillip Morris Company, the company changed its name to Altria Group in 2003 and remained the parent company for Kraft Foods Inc., Phillip Morris International, Philip Morris USA and Philip Morris Capital Corporation.

By 2007, the company split off Kraft Foods, distributing all stock to Altria shareholders. Additionally, in the same year, the company acquired John Middleton, which manufactures and markets large rolling cigars and pipe tobacco.

The company grows again in 2009

In 2009 Altria is acquiring UST Inc., which was a holding company that produced smokeless moist tobacco products through USA Smokeless Tobacco and premium wines through Ste. Michelle Estates. This strategic expansion broadened the company’s product lines as cigarette sales slowed.

Altria sells stake in Anheuser-Busch InBev

After Bud’s Light Public relations disaster, the company decided to sell some of its massive position in the brewing giant. Altria owned more than 10% of Anheuser-Busch InBev SA (NYSE: BUD ), the world’s largest brewer.

Earlier this year, the company sold 35 million of its 197 million shares through a global secondary offering. This represents 18% of their holdings, but still leaves 8% of outstanding shares in their back pocket. The company also announced a $2.4 billion share buyback plan, partially funded by the sale.

Altria could raise its dividend in August

Altria Group has increased its dividend every year since 1970, making the company a member of the exclusive Dividend Kings. The current dividend yield is 7.93%. Over the past five years, management has increased the dividend by an average of 5% annually.

Based on published reports Altria Group typically announces quarterly dividend increases in August, but the board has discretion over future payouts. Here is the next dividend schedule for stocks.

• Declaration date: 22 August 2024
• Ex-dividend date: September 16, 2024
• Registration date: September 16, 2024
• Payment date: October 10, 2024

Altria is a solid long-term high-yielding dividend earner

As one of the very A few high-yielding dividend stocks, Altria should continue to be a core holding for investors looking for large, reliable passive income streams. While cigarette smoking has declined in the United States over the past 40 years, it remains popular, particularly in Asia, Indonesia, and parts of Europe. Shareholders should continue to be rewarded with solid total returns, especially as interest rates begin to decline and high-yielding dividend stocks return to prominence.

The best dividend stock with a yield of over 12%

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