A high dividend yield of 7.9% makes Altria a great opportunity for income seeking investors. Its P/E ratio of 10-11x suggests the stock might be undervalued amidst a conservative outlook. Adverse regulatory developments, such as widespread flavor bans impacting nicotine pouches or unexpectedly stringent regulations on HNB products could impact Altria depedning upon their response.
Recently, Zacks.com users have been paying close attention to Altria (MO). This makes it worthwhile to examine what the stock has in store.
Philip Morris leads in terms of its global growth and its smoke-free future strategy, making it a strong long-term buy.
Altria offers a compelling mix of a high, growing dividend yield and capital appreciation, despite sector stigma and regulatory risks. MO's strong profitability, robust cash flow, and ongoing share buybacks support continued EPS and dividend growth, even with flat top-line revenue. The company is strategically transitioning toward smoke-free products, maintaining momentum in oral nicotine and e-vapor segments to offset cigarette declines.
MO is backed by strong fundamentals, pricing power and long-term growth potential in smoke-free products.
Recently, Zacks.com users have been paying close attention to Altria (MO). This makes it worthwhile to examine what the stock has in store.
Altria had mixed Q1'25 earnings, driven by challenges in both the traditional tobacco market and its new alternative products category. The U.S. International Trade Commission's importation ban on NJOY ACE vape products created short-term uncertainty, but Altria plans to appeal the decision. The import ban forced the company to record an impairment charge in the amount of $873M.
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Altria Group (MO 0.52%) has long been a dividend darling that attracts investors looking for a high yield. The company has raised its dividend every year since 2009, and the stock currently sports a forward dividend yield of 7%.
Shares of Altria Group Inc. ( NYSE: MO ) have outperformed the broad market over the past month, posting a gain of 3.94% compared to the S&P 500's gain of just 0.13%.
There's seemingly never a dull moment in the stock market, and this year has been no different. Virtually all major indexes have experienced high volatility, major tech stocks are slumping, new tariffs threaten to throw off supply chains, and recession chances are seemingly increasing by the day.
Altria's Q1 results reflect increased earnings on higher operating income. Management expects earnings growth in 2025.