MO has the strongest pricing power: gross profit ratio rose from 58.95% in 2015 to 72.21% by 2025 and free cash flow covers the dividend payout. With a ~6.2% starting yield, ~4% dividend growth and a ~80% target payout ratio, the dividend looks sustainable, though declining sales volume is a concern.

To keep things simple, we can add the stock ticker MO to Altria Group, a company that probably has the strongest pricing power in the S&P 500. Right now, their starting dividend is around 6.2%, generating $3,100 in income.

And they typically increase dividends at a rate of about 4%.

Now, if we look at Altria over the past year, they've done pretty well. They've grown about 10% in the last 5 years , up about 50% , but remember this is share price, not total return. Most of their growth has come from dividends.

So, let's assess the sustainability of that dividend. We will add MO. Now, ultimately what we need to see is whether the free cash flow is covering that dividend payout , because they have a good initial dividend yield and a history of dividend growth , and we see that the free cash flow is growing that dividend payout.

In fact, management has stated that their target payout ratio is around 80%. Now, some people are concerned about the decline in sales volume and this is something to keep an eye on.

However, the real investment fundamentals lie here. Go to Ticker Data's Profitability Sheet, link is given in the description , search for Altria or the stock ticker MO and look at the Gross Profit Ratio.

In short, that's the main point. In 2015, it was about 58.95%. By 2025, it will be 72.21%. The company has incredible pricing power, which is usually a sign of a strong company. They can maintain their competitive advantage.