A Dividend Stock That Pays 6.5% and Has Great Growth Prospects

If you’re looking for a good dividend stock that has growth potential, Altria Group Inc (NYSE:MO) might be a great option. The company recently invested into Canadian cannabis stock Cronos Group Inc (TSX:CRON)(NASDAQ:CRON), which could see sales surge in 2019 as the recreational market for pot is underway, although we haven’t seen a full quarter’s worth of results just yet.

The move by Altria could prove to be significant as the cannabis industry shows a lot of potential and could be an easy way for the company to improve its financial performance. And you can be sure that if the investment in Cronos proves to be successful that Altria could be looking at other options, especially in the U.S. where the marijuana market would easily eclipse Canada’s. There’s also the possibility that with enough legal headway, Cronos could make a move into the U.S. markets at some point in the future.

For now, however, it’s a good strategic move that could pay off in a big way. But in addition to the growth potential, Altria also pays a good dividend. Currently, the company pays shareholders 6.5% after recently raising its payouts. That’s a pretty high dividend which could help pad investor returns over the course of the year. Since 2013, dividend payments have risen by nearly 70%, so holding the stock for the long term could pay off for the dividend income alone.

While Altria had a disappointing 2018 where its share price dropped 30%, things could be a lot stronger in 2019, especially if the cannabis industry continues to grow.