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High Yield Dividend Stocks Setting New Yearly Highs

Stocks in this article: CSCO MO JNJ TSM PG CAG

MO Dividend Yield Chart MO Dividend Yield data by YCharts

Altria (MO)

Background: Altria Group through its subsidiaries makes and sells cigarettes, smokeless products and wine in the U.S. and internationally. Founded in 1919, it is headquartered in Richmond, Va.

52-Week Range: $27.65 to $36.29

Book Value: $1.91

Price To Book: 17.4

Earnings Payout Percentage: 90%

Altria pays out $1.76 annually in dividend payments. The yield based on a recent price is 5.3%. After dipping below $31, shares have lit up again. Shares are above the highly watched 200-day moving average.

Altria is the classic example of why you want to buy on dips. Granted, Altria appears to be more of a tax collector than company. The most expensive ingredient in their products is the tax. While small compared to what the government takes, Altria is still able to make a relatively strong and consistent return for investors.

The percentage payout is very high by most company's standards, but this is an almost pure dividend play. Do I expect the share price to continue higher? Yes I do, but the last time smoking was cool was when Vincent Vega rolled his own and gave it to Mia Wallace while waiting for a $5 milk shake. So don't hold your breath waiting for the popularity of smoking to increase.

With that said, the profitability is stable and other than the occasional court action, is expected to remain so.

Analyst opinion is mixed with this company. Most of the analysts surveyed don't believe a buy or a sell is currently warranted. Today, Altria has seven buy recommendations out of 15 analysts covering the company, seven holds, and one recommends selling. The stock appreciated 23% in the last year and the average analyst target price for is $36.14.

The last reported short interest is only 2% of the average trading float. Basically, there is 2% out there that wished they never heard of Altria and are probably ready to take their losses.

MO Payout Ratio TTM Chart MO Payout Ratio TTM data by YCharts

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