While tobacco giant Altria Group (MO) understandably may not be everyone’s cup of tea, its relevance cannot be denied. Despite challenges to the mainline tobacco industry, Altria has been pivoting toward e-cigs and other product categories. Perhaps most importantly to investors, MO stock presently commands an annual dividend yield of 8.99%.
With President Donald Trump applying relentless pressure on the Federal Reserve to lower the benchmark interest rate — and the central bank embarking on a more dovish policy route — that high yield is going to look increasingly attractive. Again, tobacco is a risky sector but the fundamental incentive to consider MO stock for the long haul will likely continue rising.
