This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 High-Yield Stocks Ready to Boost Dividends

Stocks in this article: MO MCHP GRMN SCCO DUK

Altria Group

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

First up is "sin stock" Altria Group (MO), the $65 billion tobacco and alcohol giant that owns brands such as Marlboro in addition to a massive cellar of wine brands and a 27% stake in SABMiller (SBMRY: Pink Sheets), the second-biggest beer brewer in the world. That exposure to legacy tobacco and the alcoholic beverage business don't just make Altria the prototypical sin stock -- it also generates hefty dividend payouts for shareholders. Currently, MO pays a 41-cent quarterly dividend per share. We're counting on that to rise in the next quarter.

In recent years, Altria has made big moves to wring value out of its nontobacco assets and then shed them. The firm unloaded the last vestiges of its former ownership of Kraft Foods (KFT) in 2007, and in 2008 it split off its international business. The moves make Altria a pure play on alcohol and U.S. tobacco, a change that makes MO's valuation more transparent and has helped to unlock considerable value for shareholders in the last few years.

>>5 Value Stocks Insiders Are Snapping Up

Let's be frank: The firm's tobacco business is dying a slow death as American consumers slowly reduce their demand for cigarettes and smokeless tobacco products -- and that's just fine. Tobacco demand is decreasing quite slowly, and pricing hikes should help to offset any volume declines.

More important, enormous free cash flow generation means that Altria should continue to throw off increasingly large dividend payouts for shareholders as it continues doing what it knows best.

The firm has been paying out a 41 cent dividend, a 5.08% yield, for three straight quarters now. We'll see if a hike is on the way when management announced second quarter earnings.

I also featured Altria earlier this month in " 5 Rocket Stocks Ready for Blastoff."

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs