Why Altria Is a Top Dividend Stock

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Altria is once again going through what could be a substantial transformation, with its stake in beer maker SABMiller having become the target of a massive takeover bid from industry giant Anheuser-Busch InBev . Altria has given its approval for the $107 billion deal , which will offer the tobacco company the ability to take a sizable ownership position in Anheuser-Busch going forward. That in turn should preserve Altria's alternate source of income from the beer industry, which has been a key diversifier to offset concerns about the health of the tobacco business. Given the opportunities available in the global beer market, Altria hopes that a more powerful Anheuser-Busch InBev will keep delivering the profits that investors have come to take for granted as a key supplement to the earning power of cigarettes, smokeless tobacco, wine, and the most recent addition of tobacco alternatives like electronic cigarettes.

When will Altria's dividends rise again?

Altria last raised its dividend in September, and the company has routinely chosen the third quarter of the year to make increases to its payout. With the pricing power that Altria has demonstrated, investors can expect the tobacco giant to give its shareholders another dividend boost late next summer.

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The article Why Altria Is a Top Dividend Stock originally appeared on

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Anheuser-Busch InBev NV. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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