Mighty Altria (MO) has been on the decline ever since the FDA announcement to curb consumption of combustible cigarettes. The stock has been trading sideways in the $64-66 corridor for almost two weeks now and is yielding just below 4%.

Altria will declare its next dividend on August 24, 2017, and with investors eyeing a 8-9% increase in the dividend (this would bring the dividend payout ratio in line with Altria's 80% target payout ratio), this article analyzes how Altria's stock has reacted in the past to these dividend hikes. Are we observing investors buying the stock in the run-up to the declaration date? Are we observing people buying the stock after the dividend hike? Let's find out!

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