People often talk about a company's dividend in terms of the dollar amount or yield. That's important, along with checking its cash flow and earnings to see if the company can afford the payments. But it's also interesting to see how much cash your stock investment will generate over time.
Altria Group (NYSE: MO) raised its dividend last month, marking the 61st increase in 57 years. That makes the company a Dividend King, a group of companies that have raised payouts for at least 50 straight years. Act 2 Could Be 15x Bigger.
Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout.
Continue » By making a few assumptions, let's see how much income investors could receive by making a small $150 monthly investment in Altria Group over the next decade. The company hiked its quarterly dividend by 4.7% to $1.11 per share, in line with its targeted mid-single-digit percentage increase through 2028. Using that assumption seems like a good place to start.
Assuming a flat share price, reinvesting dividends into additional shares, and a 4% annual increase over 10 years, investors would receive $8,675 in dividends. What if Altria Group's board of directors raises dividends by 6% a year? Of course, it's also useful to look at more conservative scenarios.
If the company increased payouts by a modest 2% annually, you'd have received $7,430. What if you don't reinvest the dividends? Your monthly investment, assuming a 6% annual increase, would provide $7,883 in total dividends.
Extract — continue reading at the source.
