There's No Denying Altria Group Has a High Yield, But This Stock Could Be an Even Better Buy for Dividend Investors Looking for Reliable Passive Income
It's important to look at other factors besides dividend yields.
Overview
When investing in dividend-paying stocks, the yield (annual dividend divided by stock price) is an important consideration. But it's not the only one.
Investors should understand the company's business and its results to assess the company's dividend sustainability. After all, a high dividend yield isn't helpful if the board of directors subsequently cuts the payout.
Details
Altria Group's (NYSE: MO) stock has a 6.5% yield, and it doesn't seem likely to cut the payout anytime soon. But I prefer Coca-Cola's (NYSE: KO) shares, which yield 2.4% based on its stronger business prospects and dividend consistency.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.