3 Tobacco kings paying big dividends now

This article is intended to provide readers with more guidance on which dividend stocks can be judged by the quality and sustainability. Recent setbacks in the general market, dividend yield stock a wider circulation than they may have previously enjoyed. I hope that this increase may be relevant to investors, given the movement in the direction of the stock dividend. Atria Group (MO) is currently trading at around $ 32 per share and has a market capitalization of about $ 65 billion. In the beta version 0.42, it does not act for those who are in pursuit of income due to the rapid growth in stock prices, although the share price has appreciated by about 16% over the past 12 months. It also exceeds the S & P 500. The real claim to fame Altria is firm and offered generous dividends to shareholders. The yield on these dividends is currently pegged at 5.1%. It made generous dividends Altria expensive institutional investors and mutual fund managers alike. My goal here is to study the ability of Altria, to keep it secure dividends in the future. Altria originally worked as a producer and distributor of tobacco products. Anyone reading this boom, no doubt, recalls the company's Philip Morris, which was the nickname of the former Altria Group and the obvious reason for its ticker symbol ("MO" by Morris). Altria, like many of his peers in the tobacco trade, suffered several damaging attacks by the medical community, government, and, of course, a civil action supports the usual shots of lawyers who recognize the deep pocket when they see one. In response to Altria, a Philip Morris, began to diversify, primarily through the acquisition of a controlling stake in Kraft Foods (KFT). Later, Philip Morris has undergone re-branding and turned into a present day group of Altria. Altria has since allocated their share of Kraft, and it also highlighted its international arm of the tobacco company Philip Morris International (PM), which makes other tobacco and tobacco, without acquisitions. Altria Kraft allocated in March 2007 the company completed the spin of the Philip Morris International a year later, in March 2008. Since then, Altria bought U.S. Smokeless Tobacco Company, together with its implementation, Ste. Michelle Wine Estates, wine company. Altria also bought by John Middleton, a cigar manufacturer. Diversification does not stop there. Altria also supports the portfolio of leveraged and direct finance lease rail and ground transportation, aircraft, energy, real estate and manufacturing. Nevertheless, let us consider the stability of reliable dividends Altria. There is general agreement that a key factor in assessing the quality of the dividends is consistency and growth. Since June 2008, dividends Altria rose from $ 0.29 to $ 0.32, then from $ 0.34 to $ 0.35, to $ 0.38 the next, and finally to $ 0.41, demonstrating both consistency and growth. You will not see a lot of ink for $ 0.75 and $ 0.69, which Altria dividend paid in 2007. Security and stability are best defined in terms of interest coverage ratio, earnings per share, payout ratio and free cash flow payments. So, let's see how Altria adds. Interest coverage ratio is the solvency ratio is calculated as profit before tax divided by interest payments. In the case, Altria, the ratio is 5.58. Ratio less than 1.5 is a red flag; so obviously, Altria is in good shape in connection with this standard. Earnings per share paid for Altria is 96%. It's just a calculation. Simply put, it is equal to (Dividends - Dividends Stock) / net income. Despite the lack of consensus on the acceptable upper limit of this ratio, most would agree that the coefficient of greater than 80% troublesome. The ratio of free cash flow to Altria also leads 80%, and is a cause for concern as well. Some may argue that the ratio of free cash flow is the best payout ratio than the earnings per share of payments, but investors should look at both. There are differences. In the end, a convincing argument for adding to its portfolio of Altria can be done. In the end, Altria earnings rose steadily and the payment of dividends, not only has been covered over the past five years, but dividends also increased. While Altria, of course, should not be regarded as a "buy and forget" stocks, with careful monitoring it may be a good game. Contrasting Altria another high dividend yield stocks could help from our point of view. Let's look at Reynolds American (RAI), the other tobacco stocks, which traded at about $ 40 per share and a market capitalization of about $ 23 billion. Reynolds pays a dividend gives 5.6% as Altria, has earnings per share payout ratio of 96%. Interest coverage ratio, however, is actually higher than Altria coming in at 10.65. Reynolds also offers excellent free cash flow ratio of about 75%. Reynolds also has been a steady increase in dividends and sport identical five-year dividend yield of 8%. In contrast to Altria, however, Reynolds did not enjoy the same level of revenue growth. The trend over the past three years is not beneficial. Another potential stock dividend from tobacco genre Lorillard (LO), which traded at around $ 127 per share with a market capitalization approaching $ 17 billion. This capital gives 4.3% and has earnings per share payout ratio of 68%. Profit Lorillard, were choppy and shareholder action was in negative territory since 2009. In short, this one requires serious research, especially in light of the recent acquisition of Blu ecigs, manufacturer of electronic cigarettes. The fact is, focusing on a few indicators and the basis is a sign of a novice investor. It is important to get a broad understanding and deep knowledge of any forward-looking company, you can consider for your portfolio. If a reliable dividend yield is your goal, you will eventually narrow, but not at the expense of the big picture, which should also include any positive or negative catalysts for your research shows. Disclosure: I have no positions in any stocks mentioned, and does not intend to initiate any positions within the next 72 hours.