Altria: Dividend Hike Of 7.7% On The Way!

There are few safer bets for a dividend growth investor than Altria (NYSE: MO). The company has consistently increased dividends every year for 45 years.In addition, it has spun off great companies like Philip Morris (NYSE: PM) and Kraft Foods (Nasdaq: KRFT) which, for its part, later spun off Mondelez (Nasdaq: MDLZ). Have you been a patient shareholder in Altria through the decades, you have been handsomely rewarded.MO data by YChartsAs the chart above reveals, investors have been handsomely rewarded also over the last five years with the stock increasing from approximately $19 to $49.44. In addition, investors have enjoyed a nice dividend, frequently above 5%.The stock has pulled back from its all-time highs set early in the year. In this article, I'll analyze whether that makes the stock attractive or if one should wait for it to pull back more.Historical Dividend GrowthThe company's dividend record over the last five years can be summed up in one word: Stability.MO Dividend data by YChartsThough its payout-ratio has been fluctuating between 68% and 95% of EPS, the annual dividend has been consistently increased by between 7% and 9% every year. You pretty much know that you as an investor will get a raise of approximately 8% every year from this investment.The dividend has been raised from a level of $0.38 in early 2011 to a level of $0.52 currently, representing a total growth rate of 37% over the period and a cumulative average annual growth rate of 8.2%. We can also see... Read more