Altria Group, Inc. (MO)
Altria: Potential Beyond Traditional Tobacco Products Makes It A Must-Own For Dividend Investors
Altria's robust growth in smokeless products like NJOY and on! offsets the decline in smokeable products, making it a compelling dividend stock for passive income investors. Despite recent flat performance, Altria's solid earnings, strong balance sheet, and strategic buybacks enhance dividend safety and potential upside over the next 12–24 months. Altria's distribution network expansion and growth in e-vapor and oral nicotine categories position it well for future market share gains and revenue growth.
The S&P 500 Stock With the Highest Dividend Is a Pure Cash Machine
[00:00:04] Doug McIntyre: Lee, the tobacco business is good.
Altria's Problems Go Deeper Than Just Falling Tobacco Sales
Smoking rates have been declining significantly for decades. According to the American Lung Association, less than 12% of adults smoked in 2022, compared to nearly 43% in 1965.
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Is Altria Group Stock a Buy, Sell, or Hold in 2025?
Tobacco giant Altria Group (MO 2.24%), a traditionally slow and stodgy stock, saw its share price soar nearly 30% in 2024, and that increase doesn't include the stock's legendary, high-yield dividend (total return was 41%). The company, best known for selling Marlboro cigarettes in the United States, is has a solid following in the dividend investing community.
Altria Q4: A 13% Equity Bond In Disguise
Under the guidance provided in its Q4 earnings report, Altria Group, Inc.'s EBT (earnings before taxes) multiple is only 7.5x, translating a 13.3% EBT yield. This makes it comparable to an equity bond with 13% yield, given the resilience of its business model. But it gets even better as the coupons of bonds do not growth while I expect the earnings of MO to grow at a consistent rate of ~4% per annum.
Is Trending Stock Altria Group, Inc. (MO) a Buy Now?
Zacks.com users have recently been watching Altria (MO) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
What's Next For MO Stock?
Altria (NYSE: MO) recently reported its Q4 results, with revenues and earnings slightly ahead of the street estimates. The company reported revenue of $5.11 billion and adjusted earnings of $1.29 per share, compared to the consensus estimates of $5.05 billion and $1.28, respectively.
Better Stock to Buy Right Now: Altria vs Kraft Heinz
Altria (MO 1.19%) and Kraft Heinz (KHC -1.88%) are blue chip consumer staples giants that for a time were parts of the same company. Altria, the domestic tobacco giant formerly known as Philip Morris USA, bought Kraft Foods in the 1980s and owned it until its spin-off in 2007.
Altria Becomes Dividend King of S&P 500
Cigarette maker Altria Group Inc. (NYSE: MO) now has the best yield of any stock in the S&P 500 at 8%.
Altria Group: Buying Opportunity After Shares Retraced, Pushing The Yield To 8%
Altria Group is a strong buy due to its robust earnings, dividend growth, and undervaluation compared to peers like Philip Morris. Despite a recent 9.35% decline, MO's solid Q4 performance and future EPS growth make the current retracement a buying opportunity. MO's ability to grow EPS and dividends, coupled with a high dividend yield of 7.81%, makes it attractive for income-focused investors.
Altria Group: Despite Some Key Wins, The Opportunity Looks Mediocre At Best
Altria Group, Inc. exceeded analysts' expectations for Q4 2024 but continues to struggle with declining market share and volumes, particularly in cigarettes. Despite launching a $1 billion share buyback program, the company faces challenges in its smoke-free strategy and overall market competitiveness. Revenue from smokeable and oral tobacco products saw modest growth, but market share and shipment volumes for key brands like Marlboro and Copenhagen declined.
