Dividend Growth Potential: A Closer Look at Universal Corporation (UVV)

Universal Corporation (NYSE:UVV) has been highlighted as one of the 12 Best Stocks to Buy Now for Passive Income.

Universal Corporation (NYSE:UVV) is a longstanding leader in the global agricultural market, boasting over a century of experience in providing a diverse array of quality products and tailored solutions that cater to the specific needs of its customers. The company has established a vast network of farmers and partners across more than 30 countries, generating a strong reputation for supplying consistent and traceable agricultural commodities.

In its Q1 2025 earnings update, CEO Preston Douglas Wigner highlighted a significant increase in flue-cured and burley crop yields this season, with the majority of green tobacco purchases in Brazil and Africa completed. He indicated hopes for a more balanced supply throughout the fiscal year, although the potential for an oversupply looms by year-end. Wigner reiterated that customer demand remains robust, despite the larger harvests, noting that uncommitted tobacco inventories were relatively low, accounting for approximately 11% of total stock as of June.

Furthermore, Universal Corporation (NYSE:UVV) is particularly appealing to income-focused investors as it holds the esteemed title of Dividend King. With an impressive history of 55 consecutive years of increased dividend payouts, UVV ranks as one of the top choices for passive income seekers. Currently, the company offers a quarterly dividend of $0.82 per share, equating to a yield of 5.99% as of September 22.

While there is no denying the allure of investing in UVV, it’s essential to acknowledge that certain AI stocks might provide higher potential returns with reduced risk of loss. If you’re searching for an undervalued AI stock that stands to benefit from the geopolitical landscape and onshoring trends, consider exploring our complimentary report on the best short-term AI stock.

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Disclosure: None.