2 Dividend Kings Worth a Closer Look Today

Today, we’re breaking down two companies that stand out from the crowd: tobacco giant Altria and retail powerhouse Target

May 05, 2025

For dividend investors seeking opportunities with strong growth potential, MaxDividends Stock Ideas offers a daily, in-depth look at companies worth considering for a dividend portfolio.

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Intro

💡 Invest in companies you believe in - W. Buffett

Dividend stocks are like reliable old friends—they pay you consistently, don’t cause drama, and rarely let you down. But even among the steady performers, some can still surprise you.

Take Altria, for example—a company that’s been rewarding shareholders for decades, despite lawsuits, regulations, and shifting public sentiment. Or Target, the retail chain that didn’t just survive the Amazon era but thrived in it by mastering the art of omnichannel sales.

There’s more to both stories than meets the eye. And if you think you already know everything about these dividend kings, think again. Here’s why these two stocks deserve a spot on your watchlist right now.

1. Altria Group

Altria Group, Inc. is an American company that manufactures and sells tobacco products through its subsidiaries. Its main products include Marlboro cigarettes, Black & Mild cigars and pipe tobacco, smokeless and chewing tobacco under the brands Copenhagen, Skoal, Red Seal, and Husky, as well as nicotine pouches under the on! brand and NJOY ACE e-cigarettes.

The company operates primarily in the United States, distributing its products through wholesalers and large retail chains. Founded in 1822, Altria is headquartered in Richmond, Virginia. It is considered financially stable and profitable, showing consistent growth and offering an attractive dividend yield.

History of the Company

Altria Group, Inc. traces its roots back to 1847, when George Weyman founded Philip Morris & Co. Ltd. in London. The business expanded to the United States in the early 20th century and grew into one of the leading tobacco companies in the country.

In 1985, Philip Morris Companies Inc. was established as a holding company, and in 2003, it was renamed Altria Group, Inc. to reflect its broader business portfolio beyond tobacco. With a history spanning over 175 years, Altria remains a dominant force in the U.S. tobacco industry while investing in smoke-free alternatives and emerging markets.

A Proven Dividend King 👑

Altria Group, Inc. has firmly established itself as a proven dividend performer, often referred to as a "Dividend King" due to its consistent and generous shareholder payouts. With 55 consecutive years of dividend payments and dividend growth, Altria demonstrates a strong commitment to returning value to investors.

The company's current forward annual dividend yield stands at 6.80%, with a forward dividend of $4.08 per share. Its MaxRatio of 10.90% indicates a projected double-digit dividend yield on cost over the next 10 years, based on its historical dividend CAGR and current financial health.

These metrics highlight the company's resilience and appeal to long-term income-focused investors.

Between 2006 and 2008, Altria executed two spin-offs, distributing shares of Kraft’s and Philip Morris. There was no actual reduction in dividends.

**Resumption of Dividend Growth and "Dividend King" Status**

Despite a nominal dividend reduction in 2009, Altria retained its status as a "Dividend King" because:

The dividend cut was technical in nature and reflected changes in the company’s structure, not a deterioration of its financial condition.
The company resumed annual dividend increases after 2009, maintaining a consistent track record of shareholder payouts.

Therefore, the 2009 dividend reduction should be seen as part of an adjustment to a new corporate structure, rather than a break in the tradition of dividend growth.

Financial Statement

If you want to stay on top of your portfolio's health, don't forget to check in on the financials of the companies you've invested in. The better shape they’re in, the better your results will be. Keep an eye on their quarterly and annual reports to see how they're performing.

Here is a quick dive into Altria Group over last years

MaxDividends App: Altria Group Financial Statement. Revenue.

The strongest and most stable companies tend to have a Financial Score of 80+, with the very best ones hitting 90+. If you see that score start to dip below 80, that’s your cue to consider jumping ship before things get worse.

MaxDividends App List of Top Dividend Stocks

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Our Paid Members get access to a curated watchlist of 19,000 companies worldwide, all scored by our team on a regular basis. Companies like Altria Group are on that list, too.

Future Growth Prospects for Altria Group

Altria Group, Inc. is strategically positioned to pursue future growth through targeted investments and portfolio diversification. The company’s growth roadmap emphasizes international market expansion, digital innovation, and product development, backed by significant financial commitments.

In 2025, Altria plans to increase its R&D investment to $512 million and launch nine new products, aiming to capture an additional 2.8% market share. A $250 million allocation is directed toward entering high-potential emerging markets, while $125 million supports digital transformation efforts. Additionally, with a $1.2 billion budget earmarked for strategic acquisitions, Altria is actively exploring partnerships to enhance its competitive edge.

Projections for 2025 include a revenue growth rate of 4.5%, a 5.6% increase in EPS, and a 3.4% boost in operational efficiency. Combined with improved scores in technology integration and market adaptability, Altria’s future outlook signals strong, sustainable growth potential.

Current Dividend Yield 7.14% higher than 10 Years Average 6.50% Dividend Yield

Current Payout Ratio 78.75% higher than average 10 Years Payout Ratio 46.47%

With MaxDividends, it's easier than ever to access top dividend companies, track your results, and explore new dividend ideas.

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Altria Group Total Revenue over 10 Years

2. Target Corporation

Target Corporation is a leading U.S. general merchandise retailer, operating both physical stores and digital platforms like Target.com. The company offers a broad assortment of products, including clothing and accessories for all ages, beauty and personal care items, groceries, electronics, home goods, furniture, and household essentials.

Founded in 1902 and headquartered in Minneapolis, Minnesota, Target is known for its strong brand partnerships, private labels, and consistent dividend history, making it a well-established player in the consumer defensive sector.