Dividend stocks provide a certain level of safety in a volatile market. And tobacco giant Altria Group (MO) has long been a favorite among income-seeking investors, with its consistent dividend hikes and ultra-high yield. Altria is one of the world's largest and most recognized tobacco companies. It pays an attractive annualized forward dividend yield of 7.6%, significantly higher than the consumer staples sector average yield of 1.9%.
Tobacco is an addictive and recession-proof product, which is why Altria has been able to increase its earnings and continues to pay dividends. However, investors have been skeptical of Altria's ability to maintain dividend payments. The decline in tobacco sales, as well as the industry's overall challenges, continue to haunt the tobacco giant.
