Want $500 in Passive Income: Invest This Much in Altria Stock

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• Altria is a member of the Dividend Kings.
• The company has raised the dividend shareholders receive for a stunning 54 years.
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Passive income is characterized by its ability to generate revenue without requiring the earner's continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Those looking to buy solid Dividend Kings stocks may consider tobacco giant Altria Group Inc. ( NYSE: MO ). The shares are a great idea as a solid passive income-generating machine. The stock has rallied some over the past month and still offers investors a fantastic entry point.

Why Invest in Altria?

Altria is one of the world's largest producers and marketers of cigarettes and other tobacco-related products.

This tobacco company offers value investors a rich 8.46% dividend. Altria manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.

Altria provides cigarettes primarily under the Marlboro brand, as well as:

• Cigars and pipe tobacco, principally under the Black & Mild brand
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches.

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev ( NYSE: BUD ), the world's largest brewer. The company sold 35 million of its 197 million shares through a recent global secondary offering. That represents 18% of their holdings but still leaves a hefty 8% of the outstanding shares in their back pocket. They also announced a $2.4 billion stock repurchase plan partially funded by the sale.

How many shares of Altria are needed to generate $500 in passive income

Investors looking to generate $500 per year in passive income by owning Altria shares, which pay $3.92 per share each year, would have to buy 128 shares of the stock at current trading prices. That would be approximately a $5,933 purchase, and with the stock looking to break out to a 52-week high there could be some solid upside potential to go with the passive income.

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