Recent earnings and dividend updates have made Altria Group, Inc. an even strong dividend stock than British American Tobacco p.l.c. MO and BTI both declared similar dividend growth rates (~3.9% YOY), reflecting growth pressure. But both stocks offer plenty of positives (e.g., yield, value, profitability, etc.) to more than counterbalance the growth issue.
Nicotine pouches dominate 55.7% of the oral market, raising pressure on MO as on! loses share and on!
MO has lost part of its Q2'25 - Q3'25 gains, as the market over-reacts to the FQ3'25 top-line miss and the minimally raised FY2025 adj EPS guidance. The tobacco company's expanding profit margins already underscore the highly durable pricing power and the consistently improving operational scale, despite the lower volumes. MO has been highly competent in allocating its rich cash flows across dividend payouts, balance sheet deleveraging, and shareholder equity growth as well.
MO is backed by strong fundamentals, pricing power and long-term growth potential in smoke-free products.
MO's alliance with KT&G aims to accelerate its global push into modern oral nicotine and smoke-free products.
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Altria Group, Inc. reported mixed Q3 results, missing revenue expectations but delivering in-line EPS, leading to a 5% price pullback. MO's strategic partnerships and expansion of its smokeless tobacco portfolio, including On! PLUS and LOOP, position it for future growth amid cigarette volume declines. Lower base rates and recent partnerships are expected to provide tailwinds and accelerate MO's growth.
MO's oral tobacco unit hits a 69% margin in the third quarter, powered by pricing discipline and cost control despite volume declines.
Altria (MO) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Altria Group's stock price fell at a double-digit rate, presenting me and you with a "buy the dip" opportunity. The market overreacted to some negative news presented in Altria's Q3 2025 statements concerning both smokeable and non-smokeable segments. Investors should keep a long-term orientation when it comes to Altria's key initiatives on its path to smoke-free portfolio.
Shares of Altria Group Inc. ( NYSE: MO ) plummeted 14.25% over the past month after losing 1.47% the month prior.
MO's Helix unit drives margin gains as new on! PLUS nicotine pouches launch in key states amid tough pricing pressure.