When seeking top dividend stocks with high yields, a proven history of distributions is paramount. Among those yielding over 6%, Altria Group (NYSE: MO) stands out as a “Dividend King.” With a track record of increasing its annual dividend for over half a century, Altria’s consistent commitment to shareholder value is hard to beat. Management has been prioritizing shareholder value for decades and does not appear to be about to quit anytime soon.
Now that Altria Group is expanding from mainly cigarettes to a portfolio that includes less harmful products, it has widened the net of potential investment portfolios for which it meets the standard. With an attractive dividend yield of 6.8%, Altria stock has been delivering the best of both worlds, including 13.2% year-to-date share price appreciation compared with a 2% YTD gain for the S&P 500 index in the same stretch. If history is any indication, Altria Group is one that you can add to your portfolio and expect to continue collecting dividend checks while potentially generating capital returns.
Key Points
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Altria Group has been raising its annual dividend for over 50 years.
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Additionally, the share price is up 13% year-to-date compared with a 2% gain in the S&P 500 index.
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Dependable Dividend
Altria Group trades in the consumer staples sector, making it a defensive play in the face of a slowing economy. This is one of the reasons why we selected Altria Group as the top high dividend play, as its defensive positioning in an investment portfolio make it a reasonable bet during heightened uncertainty with tariffs, geopolitical tensions, etc.
At a market cap of $99.8 billion, Altria pays a quarterly cash dividend of $1.02 per share, the most recent of which was declared in May 2025. At that pace, shareholders are receiving annual distributions of $4.08 per share. Altria paid dividends amounting to $1.7 billion in Q1 2025. The company is also actively buying back shares, another key way in which companies return value to shareholders. In Q1 2025, Altria repurchased 5.7 million shares for a tally of $326 million.
In 2025, Altria is targeting full-year adjusted diluted EPS growth rate of 2%-5% compared with 2024. Altria’s balance sheet includes $4.7 billion in total cash and $26 billion of debt. Its high debt is somewhat offset by solid cash flow, high profitability and pricing power.
Wall Street Views
Wall Street analysts are mostly split on Altria stock, with a mix of buy, sell and hold ratings. The average price target of $56.86 suggests potential downside risk of approximately 4% from current levels.
In early 2025, Morgan Stanley analysts reemphasized their “equal-weight” rating on Altria, setting a price target of $53. They pointed to Altria’s robust financial flexibility but also warned about challenges posed by continued contractions in smokable product volumes and a limited reduced-risk product offering, exacerbated by some litigation issues.
Nevertheless, Altria’s stock continues to defy the odds both in its share price performance and dividend payout. Altria’s relationship with cigarettes is complicated, given its dependence on the Marlboro brand for sales but simultaneous commitment to moving into safer consumer products. Investors who are going to get the most out of dividends will need to commit to riding out the journey with Altria Group.
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