Verizon vs. Altria: Which Dividend Stock is Better for 2024?

In the article, Parkev Tatevosian, a CFA, compares Verizon Communications (VZ) and Altria Group (MO) to determine which is the better buy for passive income investors. Both companies have a history of paying dividends, but which one is a better investment for 2024?

Verizon Communications is a telecommunications company that provides wireless and wireline services. The company has a strong presence in the United States and has been investing in 5G technology to expand its network. Verizon has a dividend yield of 4.2%, and the company has increased its dividend for 13 consecutive years.

On the other hand, Altria Group is a tobacco company that produces cigarettes, smokeless products, and wine. The company has a long history of paying dividends and has increased its dividend for 50 consecutive years. Altria has a dividend yield of 6.8%, which is higher than Verizon’s yield.

When comparing the two companies, it’s essential to consider the risks associated with each investment. Verizon’s business is heavily regulated, and the company faces competition from other telecommunications companies. Additionally, the growth of the telecommunications industry may be slower than other industries.

Altria, on the other hand, faces regulatory risks due to the tobacco industry’s negative health effects. The company’s business is also affected by changing consumer preferences and increasing taxes on tobacco products.

In conclusion, both Verizon and Altria are dividend stocks with a history of paying dividends. However, investors need to consider the risks associated with each investment before making a decision. While Altria has a higher dividend yield, the risks associated with the tobacco industry may be a concern for some investors. Verizon, on the other hand, has a lower dividend yield but may be a safer investment due to its regulated business and investment in 5G technology.