Is This Ultra-High-Yield Dividend Stock a No-Brainer Heading Into 2026?

• Cigarette shaper Altria has accrued its yearly dividend for 56 consecutive years.

• It has utilized its pricing powerfulness to offset declining measurement owed to less big smokers.

• With a guardant P/E ratio of astir 10.7, Altria is trading astatine a bargain by astir standards.

• 10 stocks we similar amended than Altria Group ›

Dividends are an effectual mode to make worth from your stocks without relying solely connected their banal terms performance. A dividend positive banal terms maturation is evidently ideal, but it's bully knowing you person guaranteed dividend income successful the works careless of however a banal performs.

One dividend banal that has been a staple connected the marketplace for decades is baccy elephantine Altria Group (NYSE: MO). With 56 consecutive years of dividend increases (and 60 full successful that span), Altria is simply a dividend king and 1 of the highest-yielding stocks connected the market.

With a 7% dividend output (as of Dec. 8), Altria's banal could beryllium appealing to investors seeking income. However, does that unsocial marque it a no-brainer heading into 2026? Let's instrumentality a look.

Altria owns well-known baccy brands specified arsenic Marlboro, Black & Mild, Copenhagen, Skoal, Virginia Slims, and others. These companies span from accepted cigarettes to cigars to smokeless baccy to e-vapor, and successful galore cases, Altria holds a beardown presumption successful these categories.

One sound connected Altria's concern successful caller years has been the declining smoking complaint of American adults, which, successful turn, has translated to declining measurement for Altria. Smoking rates among adults person fallen from astir 42% successful 1965 to conscionable implicit 11% successful 2022.

Luckily, Altria has been capable to offset declining measurement with its pricing power. Tobacco consumers, for amended oregon worse, don't typically halt utilizing baccy whenever prices are increased. In immoderate instances, they'll power to a cheaper brand, but successful a batch of cases, they'll conscionable woody with the summation and bargain their preferred brand. This is however Altria's financials person remained unchangeable adjacent portion its measurement has declined.

Altria isn't a institution that's going to acquisition precocious gross growth, but its gross has remained reasonably unchangeable implicit the years. Simply raising prices isn't a productive semipermanent strategy, but it has bought, and volition proceed to buy, Altria clip portion it gets a viable non-tobacco option.

There's nary uncertainty that Altria's selling constituent is its dividend. However, if the institution continues to suffer measurement and can't afloat offset it with its pricing power, determination are rightly questions astir the dividend's stability. The bully quality is that the dividend doesn't look to beryllium successful jeopardy.