Altria struggles with challenges in the Smokeable Products unit, driven by economic pressures on consumers and the rise of illegal e-vapor alternatives.
While Altria's share price hasn't particularly moved in recent months, there have been two crucial developments for it. One, the company's dividend increase has raised the forward yield to 8.2%, which makes it second only to British American Tobacco among the big five tobacco stocks. Two, a patent infringement claim by JUUL against NJOY has gone in JUUL's favor. While Altria continues to fight it out, there's now a question mark on the brand's future.
Altria faces challenges from macroeconomic pressures and a surge in illegal e-vapor products, though smoke-free offerings provide some support.
Altria offers a compelling investment with a low P/E ratio and an 8.2% dividend yield despite facing volume declines and regulatory risks. The US market remains highly profitable for Altria, but the lack of diversification and regulatory threats pose significant risks. Vaping and other alternatives are accelerating cigarette volume declines in the US, but Altria's pricing power and buybacks support profitability.
As 2025 fast approaches, one prevailing factor is economic uncertainty, and for income-seeking investors, the stock market offers several opportunities.
In the most recent trading session, Altria (MO) closed at $49.94, indicating a +0.28% shift from the previous trading day.
Altria (MO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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The cigarette giant is a must-know stock for income investors.
These two companies offer dividend yields that are more than 3x to 5x the S&P 500 average.
For dividend champs like MO, dividends provide the most reliable insights into its true economic earnings. Given the stock's recent dividend raise of 4%, I see a sizable margin of safety judging by the FWD yield. I anticipate the margin to further widen given the market's updated outlook for interest rate cuts.
Investing in the stock market has proved to be the surest way to creating significant wealth over time.