Altria’s Dividend Yield Spiked After Juul Ban. The Payout Looks Secure.

We’ve detected you are on Internet Explorer. For the best Barrons.com experience, please update to a modern browser.

We’ve detected you are on Internet Explorer. For the best Barrons.com experience, please update to a modern browser.GoogleFirefox

This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.

https://www.barrons.com/articles/altria-dividend-yield-juul-ban-51656706698

July 3, 2022 7:30 am ET

  • Order Reprints
  • Print Article

The FDA’s bid to ban Juul products—like these at a shop in El Segundo, Calif., on a recent day—has weighed on Altria stock. Analysts think Altria, which has a big stake in Juul, will be able to maintain its dividend even if the ban sticks. Patrick T. Fallon/AFP via Getty Images

Whenever a dividend yield has a big move upward, it can signal trouble ahead—perhaps a dividend cut or worse. In the case of cigarette maker Altria Group however, the payout looks secure despite a recent surge.

Altria (ticker: MO), whose yield is now around 8.6% from about 7% around May 10, saw its yield spike after some bad news in late June that the Food and Drug Administration had banned all of Juul Labs’ vape products from the U.S. Altria paid about $13 billion for a minority—about one-third—stake in Juul in 2018.

Altria’s Dividend Yield Spiked After Juul Ban. The Payout Looks Secure.

Whenever a dividend yield has a big move upward, it can signal trouble ahead—perhaps a dividend cut or worse.

An error has occurred, please try again later.

Thank you

This article has been sent to

 » Read More  » Read More

Tags: No tags

Comments are closed.