If you want a reliable, low-stress stream of income from your investments, Dividend Aristocrats are worth considering. These are S&P 500 ($SPX) companies that have increased their dividend payouts every year for a minimum of 25 consecutive years. This long track record of rising dividends signals strong financial health, steady cash generation, and a focus on delivering long-term value to shareholders.
These dividend stocks are primarily large-cap businesses with durable competitive positions. They have demonstrated an ability to navigate multiple economic cycles while continuing to reward shareholders. Even during periods of market stress or economic slowdown, these companies have maintained and increased their dividend payments. This resilience makes them attractive to investors seeking stability and predictable passive income.
Within this group, Altria (MO) and Realty Income (O) stand out due to their relatively high dividend yields. Moreover, both these companies have the potential for continued dividend growth in the years ahead.
Altria is a compelling high-yield dividend stock to consider. With a forward yield of roughly 7.7%, the stock offers one of the most attractive payouts among large-cap U.S. equities, backed by decades of consistent dividend growth and sustainable payouts. In addition, the tobacco giant’s visibility into future earnings and dividend growth makes it a reliable passive income stock.
Altria increased its quarterly dividend per share by 3.9% to $1.06 last year. This marked the 60th dividend increase in 56 years, reflecting the company’s commitment to returning capital to shareholders. Moreover, it also shows the resilience of its business model, designed to generate steady earnings and cash flow across economic cycles.
Altria’s core smokeable products remain the primary profit engine, with strong net price realization expected to offset ongoing volume declines. This pricing power, combined with continued cost discipline, allows the company to defend margins and maintain steady earnings. At the same time, Altria is investing in smoke-free alternatives, positioning the business for gradual shifts in consumer preferences and long-term relevance.
Overall, its diversified revenue, pricing power, and focus on operational efficiency augur well for future earnings and dividend growth. Altria’s management projects mid-single-digit growth in adjusted diluted earnings per share through 2028. Its growing earnings will enable the company to increase its dividend in line with EPS growth.
