This is not a pitch to buy or sell or do anything --- it's just an investing 102 "thought"....
I've owned Altria (MO) for a very long time.... the reason I own it is not for the "current" dividend (in other words - if you bought it today). I own it for the CONSTANT dividend increases this particular stock produces. A couple days ago - they announced an increase to .70 per quarter. Doesn't seem like much does it? A lousy .04 per quarter.... BUT --- big Butt --- that's a 6% increase! So if inflation is running 3% - you just doubled that amount.
Now -- if you calculate YOUR dividend - at the price YOU paid.... this begins to be a serious cash cow. It takes TIME to have a relatively low paying (<5% currently) dividend stock become a cash cow - and not all companies increase their dividend payout annually -- but god bless MO -- they just keep pumping out the cash. If you're young - and this is in your IRA/401 - and that dividend is plowed back in to buying more shares (DRIP) -- when you get ready to retire in 20 years.... yeah - that's a nice holding.
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