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Altria (MO) closed the most recent trading day at $60.15, moving +2.75% from the previous trading session.
Altria Group, Inc. ( MO ), a prominent name in the tobacco and vaping space, has faced notable pressure in recent months, with its shares declining 8.2% over the past three months. This drop stands in stark contrast to the broader market's strength, as the Zacks Tobacco industry advanced 1.7%, the Zacks Consumer Staples sector gained 1.2% and the S&P 500 rallied 6.4% over the same period.
Altria (MO) closed the most recent trading day at $58.54, moving +1.76% from the previous trading session.
MO shifts its cigarette mix toward lower-priced options as consumers become more price-conscious, helping cushion volume pressure in a challenging market.
The S&P 500 booked its third consecutive gain of over 15% in 2025, but it wasn't a banner year for everyone. Some of the market's previous objects of affection treaded water in 2025, especially following the tariff re-rating in April.
Altria remains heavily reliant on traditional cigarettes, with smoke-free products contributing minimally to revenues and earnings. I expect combustible dominance to continue going forward, due to litigation resulting in a sales ban for Altria's vapes, as well as the exploding market for illegally imported flavored products. Oral pouches (on!) also face significant competition from ZYNs (produced by Philip Morris).
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.
Altria Group (MO) presents a strong contrarian opportunity both for swing traders and long-term investors. In the near term, the stock trades near key support at ~$55 with technical indicators signaling a potential rebound. Fundamentally, MO's current P/E of ~10x reflects market pessimism over topline declines, but exceptional profitability and pricing power remain underappreciated.
MO is moving beyond cigarettes as volumes fall, focusing on oral nicotine, e-vapor and heated tobacco to support growth.
Altria presents a compelling turnaround opportunity for 2026, driven by leadership transition, regulatory wins, and an expanded $2.0B stock buyback program. MO is on track to pay out ~76% of its adjusted EPS in 2026, which leaves room for new category investments as well as a higher dividend. Regulatory approval for six new on!-branded nicotine pouches and ongoing pivot to smoke-free products support future growth despite secular declines in combustibles.
MO's Helix Innovations is lifting oral tobacco results as nicotine pouch volumes climb, prices rise, and margins expand despite declines in other categories.