Passive income is a dream for many investors, offering a way to earn money without actively working for it. One way to achieve this is through dividend stocks, which pay out a portion of their earnings to shareholders on a regular basis. Altria (NYSE: MO) is a prime example of a company that offers a lucrative opportunity for passive income investors, with a chunky 7.46% dividend yield.
Altria is a tobacco giant with a long history and a strong market presence. The company owns well-known brands like Marlboro cigarettes and Skoal smokeless tobacco, making it a dominant player in the industry. With a market cap of $92.88 billion, Altria is a stable and reliable investment option for those looking to earn passive income.
One of the key attractions of Altria for passive income investors is its impressive dividend track record. The company has increased its dividend for 56 consecutive years, earning it the prestigious title of a dual dividend king and dividend aristocrat. In Q3 2024, Altria announced a 4.1% dividend increase, further solidifying its reputation as a reliable dividend stock.
To earn $1,000 in passive income from Altria shares, investors can purchase 250 shares at the current stock price of $54.85. With a dividend yield of 7.46%, each share would generate approximately $4.03 in annual dividend earnings. This means that owning 250 shares would result in an annual passive income of around $1,007. While there are no guarantees in the stock market, Altria’s consistent dividend increases and strong market position make it a compelling choice for passive income investors.
In addition to dividend stocks like Altria, investors can also explore alternative ways to generate passive income. Real estate investment, for example, offers high returns but can be a hassle to manage. Arrived Home’s Private Credit Fund provides access to short-term loans backed by residential real estate, with an annualized dividend yield of 8.1%. With a minimum investment of only $100, this fund offers a convenient way to tap into the real estate market without the complexities of property ownership.
In conclusion, earning $1,000 in passive income from a dual dividend king and aristocrat like Altria is a realistic goal for investors seeking reliable returns. With a strong market position, a history of dividend increases, and a chunky dividend yield, Altria presents an attractive opportunity for passive income seekers. By diversifying their investment portfolio and exploring alternative income sources like real estate funds, investors can build a sustainable passive income stream for the future.
