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July 3, 2022 7:30 am ET
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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.
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