3 Dividend Stocks for April 2024 [Video]

David Harrell: Hi. I’m David Harrell, editor of the Morningstar DividendInvestor newsletter. In this monthly series, we take a look at the dividend prospects of three stocks that are popular with income investors.

3 Dividend Stocks for April 2024

1. Altria MO
2. J.P. Morgan Chase JPM
3. FMC FMC

First up this month is Altria, the leading tobacco manufacturer in the United States. Altria says it has a progressive dividend goal, targeting mid-single-digit growth annually through 2028. This aligns with recent dividend growth—which was 5.1% annualized over the past five years. The stock currently yields more than 9% and trades at a 12% discount to its Morningstar fair value estimate. Morningstar analysts observe that the high payout ratio “leaves little room for maneuvering in the event of another liquidity crisis or black swan regulatory or litigation event.” But they also believe that a dividend “cut would only occur in the most extreme of circumstances.” Altria’s 10% interest in Anheuser-Busch InBev has long been …