Philip Morris, Altria and British American Tobacco are included in this Analyst Blog.
During Q3 earnings, Altria showed strong price appreciation thanks to continued growth in NJOY and on!. Smokeable products continued to see lower volumes due to consumers becoming more health conscious, which will continue to be a risk for the company going forward. Altria was able to offset this with accelerated buybacks, significantly higher than the previous year's quarter.
Altria's stock is up by more than 30% over the past year, with a recent, and sizable, post-earnings jump. Is it worth this price?
The Fed cut short-term rates again — making decent yields even more attractive. But there are some dividend gems to be found in the S&P 500.
It's time to reassess the stock after Altria's surge this year.
The company was the subject of a bullish research update on the back of a convincing quarterly earnings beat.
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.
I see Altria benefiting from the shift to smoke-free products as the NJOY and on! brands gain volume while cigarette sales fall. NJOY's device shipments tripled in Q3 2024 with the FDA approving its menthol e-cigarettes, improving its market share to 6.2%. The proliferation of illicit e-vapor products and the ongoing patent fight with Juul pose significant risks to Altria's market share and growth.
The stock has a very attractive yield.
Asness's AQR Capital Management disposed of almost its entire stake in artificial intelligence (AI) titan Taiwan Semi in favor of an industry-leading company that was sporting a 9% yield.
Dividend Raises: Four companies in my "Rose's Income Garden" portfolio raised dividends, with Mondelez leading at 10.6% and Altria offering the highest yield at 7.5%. Investment Analysis: Philip Morris, Altria, Mondelez, and WP Carey are evaluated for their dividends, earnings, and Chowder numbers, with Rose recommendations based on valuation and growth potential. Portfolio Performance: "Rose's Income Garden" portfolio yields 6.5% and has outperformed the SPY by 5.72% since November 2021, emphasizing income and value.
Altria Group, Inc.'s strong financial performance, new product traction, and compelling valuation support a “Strong Buy” rating, with a safe 7.6% forward dividend yield. Recent earnings showed positive revenue and EPS surprises, with NJOY and on! nicotine pouches demonstrating significant growth and consumer satisfaction. The “Optimize & Accelerate” initiative aims to streamline operations and achieve $600 million in cost savings, reinforcing Altria's robust fundamentals.