Should You Forget Ultra-High-Yield Altria? Here's Why These Unstoppable Stocks Are Better Buys.

Altria Group, Inc. (NYSE: MO) has long been a favorite among income investors, thanks to its ultra-high 7% dividend yield. However, the tobacco giant's core business is facing long-term decline, with cigarette volumes steadily decreasing and the company relying heavily on price hikes to maintain earnings and dividends. As a result, conservative income investors may want to consider alternative high-yield stocks with more stable business models.

Realty Income (NYSE: O) and Vici Properties (NYSE: VICI) are two such stocks that offer attractive yields and reliable growth. Realty Income, a net lease real estate investment trust (REIT), boasts a diversified portfolio of properties across retail, industrial, and other sectors. Its investment-grade balance sheet and conservative approach ensure dividend sustainability, with a yield of around 4.5% and an average annual growth rate of approximately 4.3% over the past five years.

Vici Properties, an experiential REIT, focuses on casinos, benefiting from the "house always wins" principle. Its diversifying portfolio and strong tenant base, including MGM Resorts and Caesars Entertainment, support reliable dividends, with a yield of around 4.2% and an average annual growth rate of about 5.5% over the past five years.

In contrast, Altria's dividend yield has averaged around 3.5% over the past five years, with an annual growth rate of approximately 2.5%. While Altria's non-cigarette categories, such as vapor and oral tobacco, help offset declining cigarette sales, the company's reliance on Marlboro for nearly 90% of smokable products and its cigarette volume decline pose risks to its dividend sustainability.

Investors seeking high-yield stocks should consider Realty Income and Vici Properties, which offer more stable business models and reliable dividend growth compared to Altria. Both stocks provide attractive income opportunities and long-term growth potential.



| Stock | Dividend Yield (5-Year Average) | Dividend Growth Rate (5-Year Average) |
| --- | --- | --- |
| Realty Income (O) | 4.5% | 4.3% |
| Vici Properties (VICI) | 4.2% | 5.5% |
| Altria Group (MO) | 3.5% | 2.5% |

In conclusion, while Altria's ultra-high dividend yield may be tempting, conservative income investors should consider the risks posed by the company's long-term decline in its core cigarette business. Realty Income and Vici Properties offer more attractive income opportunities and reliable dividend growth, making them better buys for investors seeking high-yield stocks.