Tobacco Company Altria Group Raises Dividend

Source from:  AP 08/29/2011

RICHMOND, Va. (AP) - Altria Group Inc., the parent of the Philip Morris USA tobacco empire, said Friday that it would raise its quarterly shareholder dividend to 41 cents from 38 cents. The Richmond, Va., company said the 7.9 percent increase reflects its intention "to return a large amount of cash to shareholders." Dividends are cash payouts that companies give to shareholders, and they can serve as an incentive to hold a company's shares. Like other tobacco companies, Altria Group is under increasing pressure from strict regulations about tobacco marketing, high-profile legal cases that have hurt the general industry, and an overall decline in U.S. smoking rates. Last month it reported that second-quarter revenue had fallen 5.6 percent and net income had plummeted 57 percent. The quarterly results included a previously announced one-time charge of $627 million tied to the tax treatment of some leveraged lease transactions entered into by its subsidiary, Philip Morris Capital Corp. The dividend is payable Oct. 11 to shareholders of record Sept. 15. In midday trading, shares of Altria added 29 cents to $26.30. Enditem