Akcie Altria do 12. října posílily o 28 % oproti 13% růstu indexu S&P 500; dividendový výnos činí 5,8 % a společnost dividendu zvyšuje již 57 let v řadě.
Plenty of stocks pay dividends, but not all of those qualify as true dividend stocks. Tobacco giant Altria (MO -2.31%) does.
Altria is a poster child for dividend stocks, routinely boasting one of the highest yields in the S&P 500 (^GSPC -0.52%). This year, though, the stock has displayed more of the characteristics of a growth stock than a typical income stock. Through the market close on Oct. 12, Altria was up by 28% compared to the S&P 500's 13%.
After that impressive run-up so far in 2026, is the stock still a good buy?
Image source: The Motley Fool.
A premier dividend stock
Despite its unusual price gains, the appeal of Altria's stock is undoubtedly based on its dividend. The company is well aware that those quarterly payouts are why some investors flock to the stock, so it prioritizes maintaining and increasing them.
At the current share price, Altria's yield is 5.8%, which is more than 5.5 times what you'd get from an S&P 500 ETF today, but still less than its average over the past five years.
MO Dividend Yield data by YCharts.
High yield aside, Altria's dividend has been the definition of consistency. The company is a Dividend King (a company with at least 50 consecutive years of dividend increases). Its streak now stands at 57 straight years. Of the thousands of stocks trading on the U.S. market, only 25 have longer dividend-hiking streaks.
MO Altria Group$74.31-$1.76 (-2.31%)
NYSE · As of 4:00 PM ET 10/23/26
Using pricing power to keep the train rolling
Altria has been the country's leading tobacco company for quite some time, leaning on its iconic brands like Marlboro, Copenhagen, Black & Mild, and others.
The nature of its business has been a double-edged sword over the past decade or so. On one hand, people are smoking cigarettes much less. A recently published report shows the smoking rate among U.S. adults at 9.9%, the lowest percentage ever recorded. This inevitably affects the country's largest cigarette producer.
On the other hand, the tobacco industry comes with lots of pricing power because many smokers are brand loyal and buy their preferred brand regardless of price. So, while Altria's cigarette sales volumes have been falling, it has offset some of those declines by steadily raising prices.
Investors don't expect huge revenue growth from Altria, so flat or occasional declines aren't deal-breakers. As long as its business is healthy enough to keep the dividends coming, many investors are perfectly content.
MO Revenue (Quarterly YoY Growth) data by YCharts.
Altria is generally more concerned with its earnings per share (EPS), because earnings are what fund its dividends and its stock buybacks. In the second quarter, its adjusted EPS grew 2.8% year over year, down from 7.3% growth in the first quarter. For a company of its size and maturity, though, that's solid.
Is Altria a buy?
Some people point to the declining smoking rates as the central hindrance to Altria's long-term success. That's a real problem for the company, no doubt, but I don't think it's as imminent a threat to its business as some may believe. It's true that "just keep raising prices" isn't a great long-term business model, but it does buy Altria time to become a true player in the smokeless nicotine space.
Altria's on! nicotine pouches have been getting good distribution, but they still don't compare to the popularity and success of Philip Morris International's Zyn nicotine pouches. Regardless, any progress is better than none, and after Altria's previous swings and misses in the space, investors should be glad for now.
If you're looking for a solid dividend stock, Altria is a great option. As mentioned, the company isn't oblivious to the fact that most shareholders only stick around for the dividend. If it lets the appeal of that dividend fade, it loses investors, which would present a bigger problem for management.
There are plenty of things Altria would do operationally before putting its dividend on the chopping block. That doesn't make the stock a foolproof investment, but if you're looking for a good income source, Altria provides that. I don't see that changing anytime in the foreseeable future.
Altria sends nearly all of its earnings straight to shareholders, leaving almost nothing in reserve, yet the board just approved another dividend raise. Understanding what keeps that math from falling apart reveals everything about whether the 5.68% yield holds or…
Altria (NYSE:MO | MO Price Prediction) pays out 89.3% of its earnings as dividends. That payout ratio is simple math: dividends per share divided by earnings per share. It’s also the clearest way to see how Altria works today. The stock trades at $76.07, up 38.33% year to date, and yields 5.68%. The payout ratio shows how much of that income depends on a cigarette business that keeps shrinking.
Why This Number Tells You More Than the Headlines
The reported numbers say Altria is still growing. Adjusted diluted EPS rose 2.8% to $1.48 in the second quarter, and 2026 guidance calls for $5.61 to $5.72. The payout ratio shows how much cash remains after the dividend is paid. At 89.3%, the answer is very little. On the July 30 call, CFO Heather Newman said, “Historically, after we have the dividend, we have about $1 billion excess in cash.” That leftover cash has to pay for buybacks, debt maturities, and smoke-free products like on! PLUS and the Horizon heated tobacco joint venture.
Here’s an unusual detail: Altria’s book value per share is -$1.598. For years, Altria has sent more money to shareholders through dividends and buybacks than it kept as earnings. It returned about $8 billion in 2025 alone. That practice wiped out shareholder equity, which stood at -$2.6B in Q2. In plain terms, the company’s balance sheet shows more liabilities than assets. Altria continues to rely on steady cash flow and borrowing, with debt-to-EBITDA at 1.9x.
Where the Ratio Stands After the Latest Raise
The board raised the quarterly dividend to $1.11 from $1.06, a 4.7% increase. The new annualized rate is $4.44. Against 2026 adjusted EPS guidance, that rate works out to about 78% to 79% of adjusted earnings. The higher 89.3% figure shows how much one-time charges, like the $2.2B NJOY impairment in 2025, can eat into the buffer. Management targets mid-single-digit dividend growth through 2028, about the same pace as its 3.5% to 5.5% EPS growth outlook. So the ratio should hold roughly steady rather than fall.
What Bulls and Bears Should Track Next
Bearish: Domestic cigarette shipments fell 3.2% in Q2 after a 10.0% drop in 2025. Marlboro’s retail share slid to 39.5% while discount brands rose to 33.8%. Higher prices are carrying the business, with Marlboro’s retail price up about 7%. If smokers push back on those prices, EPS will miss guidance and the payout ratio will rise.
Bullish: Industry cigarette declines have slowed for the fourth consecutive quarter. on! Retail share rose 0.8 share points from the prior quarter to 8.6%. PLUS now reaches 120,000 stores, and contract-manufactured export volume jumped 54.9%.
Verdict on the 5.68% Yield
The 5.68% yield looks sustainable for now because adjusted earnings still cover it with room to spare. Still, an 89.3% payout ratio means Altria can grow its dividend only as long as Marlboro keeps its pricing power.
Contact [email protected] for any questions or corrections.
Celkový výnos společnosti Altria za 10 let dosáhl 131,21 %, přičemž reinvestované dividendy se na něm podílely zhruba 88 %; samotná cena akcie vzrostla jen o 15,9 %.
Altria spent a decade writing down bad bets, watching cigarette volumes shrink, and losing ground on smoke-free products. Yet investors who stuck around still came out ahead, and the reason has almost nothing to do with the stock price.
A decade ago, Altria (NYSE:MO | MO Price Prediction) was a cigarette maker known for a big dividend. It still is. For anyone who held the stock over those 10 years, the dividend accounts for nearly all of the return.
A Decade Spent Trying to Replace the Cigarette
Altria spent heavily to move beyond smoking, and most of those deals went badly. Its JUUL stake was written down, and its heated tobacco partnership with Philip Morris International (NYSE:PM) was unwound. The NJOY e-vapor acquisition led to $2.2B in non-cash impairments in 2025, and NJOY ACE is not returning to market in 2026.
The core business kept shrinking. Domestic cigarette volumes fell 10.0% in 2025, and Marlboro’s retail share slipped to 39.5% in Q2 2026. Price increases still pushed adjusted EPS to $5.42 in 2025.
The dividend grew the whole time. The quarterly payout rose from $0.61 in late 2016 to $1.11 in September 2026, with at least one increase each calendar year.
Your $1,000 Became $2,312, Mostly From Dividends.
Altria figures include reinvested dividends. S&P 500 figures track the price change of the SPDR S&P 500 ETF (NYSEARCA:SPY).
1-Year Return
Initial Investment: $1,000
Current Value: $1,237.80
Total Return: 23.78%
S&P 500 (same period): $1,151.50 (15.15%)
5-Year Return
Initial Investment: $1,000
Current Value: $2,255.70
Total Return: 125.57%
Annualized Return: 17.67%
S&P 500 (same period): $1,705.90 (70.59%)
10-Year Return
Initial Investment: $1,000
Current Value: $2,312.10
Total Return: 131.21%
Annualized Return: 8.74%
S&P 500 (same period): $3,612.50 (261.25%)
Look at the share price alone and the decade barely moved. The stock closed at $63.70 in October 2016, so without dividends, $1,000 would be worth only $1,159, a 15.9% gain. Reinvested dividends added $1,153, or roughly 88% of the total gain.
Staying in took patience. Counting dividends, shares fell 49% between June 2017 and March 2020. Your entry date mattered a lot. Investors who bought in 2021 more than doubled their money and beat the index, while 10-year holders fell well short of the S&P 500.
Why Altria Still Appeals to Income Investors
Altria fits investors who want a steadily growing income stream and can live with a shrinking core business. It fits less well for investors who need to keep up with the broader market. (Building a portfolio you can live off without ever selling a share is the whole premise of our free dividend ladder guide, here.)
The bull case: The forward dividend is $4.44 a year, 2026 adjusted EPS guidance is $5.61 to $5.72, on! PLUS is now in 120,000 stores, and nicotine pouches make up 59.9% of the oral tobacco category.
The bear case: After a 34.38% gain so far this year, the stock sits at $73.90. That is above the $70 average analyst target and close to the $75.85 52-week high. Illicit vapes and a weak record in smoke-free products are still real risks.
Altria’s case rests on income. Over the past decade, nearly all of Altria’s return came from its dividend checks, and only investors who reinvested them finished well ahead.
Contact [email protected] for any questions or corrections.
Altria má za čtvrtletí vykázat zisk 1,51 USD na akcii, což představuje meziroční nárůst o 4,1 %, a tržby ve výši 5,3 miliardy USD. Ukazatel Earnings ESP ve výši +0,26 % naznačuje možné překonání odhadů.
Altria (MO - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 29. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis owner of Philip Morris USA, the nation's largest cigarette maker is expected to post quarterly earnings of $1.51 per share in its upcoming report, which represents a year-over-year change of +4.1%.
Revenues are expected to be $5.3 billion, up 1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.26% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Altria?For Altria, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.26%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Altria will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Altria would post earnings of $1.5 per share when it actually produced earnings of $1.48, delivering a surprise of -1.33%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Altria appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Altria nabízí očekávaný dividendový výnos 5,9 % a zvyšuje dividendu již 57 let v řadě. Pravidelná investice 100 USD měsíčně po dobu deseti let přinesla zhruba 4 800 USD na dividendách.
Altria (MO +1.72%), the largest tobacco company in the U.S., pays a forward dividend yield of 5.9%. It's raised its dividend annually for 57 consecutive years, making it a Dividend King that has increased its payout for at least 50 straight years.
If you had invested $100 per month over the past ten years into Altria, your principal would have grown from $12,000 to $13,800. But you would also have received about $4,800 in dividends.
Image source: Getty Images.
Is Altria still a reliable dividend stock?
Altria's future might seem murky because adult smoking rates in the U.S. have dropped from over 40% in the 1960s to less than 10% today. But to offset that pressure, it constantly raises its cigarette prices, cuts costs, and repurchases more shares to boost its EPS. It's also expanding its smokeless portfolio with e-cigarettes, nicotine pouches, snus, and other products.
MO Altria Group$75.11+$1.27 (+1.72%)
NYSE · As of 4:00 PM ET 10/16/26
By 2028, Altria expects to generate at least $5 billion in smoke-free revenue, equivalent to nearly a quarter of its projected sales. From 2025 to 2028, analysts expect its EPS to grow at a 13% CAGR even as its revenue barely grows. Over the past 12 months, Altria spent 78% of its free cash flow on its dividends -- so it has plenty of room for future hikes. It's also a cheap stock in this frothy market: at $75 per share, it trades at just 13 times forward earnings.
Leo Sun has positions in Altria Group. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Altria (MO) má za sebou 57 let nepřetržitého růstu dividend, očekávaný dividendový výnos 6 % a do roku 2028 cílí na nejméně 5 mld. USD tržeb z bezdýmných výrobků.
With the 10-Year Treasury paying a 5.1% yield, it might seem smarter to invest in fixed-income instruments like CDs and bonds rather than dividend stocks. After all, fixed-income plays generate safer, guaranteed returns, and they must raise their yields as interest rates rise.
However, fixed-income instruments aren't a good fit for long-term investors, since their principal never appreciates. Meanwhile, most blue chip stocks appreciate over the long term, and reinvesting their dividends through downturns can create some massive compound returns.
Image source: Getty Images.
That's why the S&P 500 (^GSPC -1.15%) has delivered an average annual total return of 10% ever since its inception in 1957. The easiest way to capitalize on that trend is to simply buy an S&P 500 ETF, reinvest its dividends, and come back in a few decades.
However, the S&P 500's 1% yield might not satisfy income-oriented investors. So if you have $5,000 and want to park it in a higher-yielding stock, you should consider buying Altria (MO +1.48%) -- a component of the S&P 500 and a Dividend King (a stock that has raised its dividend for over 50 straight years) with 57 consecutive years of dividend hikes.
MO Altria Group$74.93+$1.09 (+1.48%)
NYSE · As of 2:01 PM ET 10/16/26
Why is Altria a good dividend stock?
Altria is the largest tobacco company in the United States. It owns Marlboro, the country's leading cigarette brand, as well as other cigarette brands, cigars, and smokeless products.
Altria might initially seem like a risky investment, since it generates most of its revenue from cigarettes. Adult smoking rates in the U.S. have dropped from more than 40% in the 1960s to less than 10% today, and its annual cigarette shipments have declined for decades.
But to offset that pressure, Altria raises cigarette prices, cuts costs, and buys back its own shares to boost its cash flow and EPS, even as revenue barely grows. It's also expanding its portfolio of smokeless products -- which include its NJOY e-cigarettes and On nicotine pouches -- to reduce its dependence on cigarettes. By 2028, it expects to generate at least $5 billion in smoke-free revenue, equivalent to nearly a quarter of its projected sales.
From 2025 to 2028, analysts expect Altria's EPS to grow at a 13% CAGR. Yet it trades at just 13 times forward earnings and pays a forward yield of 6%. So if you're looking for a simple way to generate $300 in annual income from a $5,000 investment, Altria checks all the right boxes.
Altria's cigarettes kill hundreds of thousands of Americans every year, yet its stock is quietly outperforming the S&P 500 by a wide margin in 2024. The question investors now face says as much about ethics as it does about returns.
Most of Altria’s (NYSE: MO | MO Price Prediction) revenue comes from cigarettes. It owns the world’s most visible cigarette brand. That is, Marlboro, which is a huge part of its revenue. Altria’s image problem is simple. According to the CDC, “Smoking and secondhand smoke exposure cause over 480,000 deaths in the U.S. each year.” The WHO says the figure is 7 million worldwide. This does not include the people whose health is severely damaged by cigarettes.
Altria has an attraction few stocks do. It has a 6.2% dividend and has raised its dividend 61 times over the last 57 years. It has also bought back shares worth tens of billions of dollars over the same period. Its rock-solid balance means that trend will almost certainly continue.
And yield stocks usually have mediocre stock performance. Altria shares are up 27% year to date while the S&P 500’s increase is less than 13%. As the tech sell-off continues, Altria’s stock price advance could accelerate, as investors look for a safe harbor
Altria is not alone among S&P 500 stocks with a yield over 6%. UPS (NYSE: UPS) is on the list. So are General Mills (NYSE: GIS) and Pfizer (NYSE: PFE). People who are squeamish about a tobacco stock have other places to go.
Altria’s finances are mundane but steady. In the most recent quarter, revenue was flat at $6.1 billion. EPS dropped 3% to $1.37. The company also narrowed its guidance for the balance of the year, and it did so at the top of the previously disclosed range.
Altria has also weathered a sharp drop-off in smoking in America. In 1995, 25% of adults smoked. Last year the figure was 10%. The pace of the decline has slowed.
Investors will face a trade-off if the AI stocks sell-off continues. Will they buy the stock of a company with products that kill people?
Contact [email protected] for any questions or corrections.
Douglas A. McIntyre
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
NorthCrest Asset Manangement LLC grew its holdings in shares of Altria Group, Inc. (NYSE:MO – Free Report) by 201.4% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 22,340 shares of the company’s stock after acquiring an additional 14,928 shares during the period. NorthCrest Asset Manangement LLC’s holdings in Altria Group were worth $1,596,000 as of its most recent SEC filing.
Other hedge funds also recently modified their holdings of the company. Cornerstone Planning Group LLC increased its position in Altria Group by 5.8% in the 1st quarter. Cornerstone Planning Group LLC now owns 2,619 shares of the company’s stock valued at $191,000 after buying an additional 143 shares in the last quarter. Angeles Wealth Management LLC lifted its stake in Altria Group by 1.3% during the 2nd quarter. Angeles Wealth Management LLC now owns 11,239 shares of the company’s stock valued at $821,000 after acquiring an additional 146 shares in the last quarter. Bernardo Wealth Planning LLC lifted its position in shares of Altria Group by 4.6% during the second quarter. Bernardo Wealth Planning LLC now owns 3,379 shares of the company’s stock valued at $243,000 after purchasing an additional 149 shares in the last quarter. Old Peak Finance LLC lifted its position in shares of Altria Group by 1.3% during the 2nd quarter. Old Peak Finance LLC now owns 11,920 shares of the company’s stock worth $858,000 after buying an additional 151 shares in the last quarter. Finally, Joel Isaacson & Co. LLC boosted its position in Altria Group by 0.7% in the second quarter. Joel Isaacson & Co. LLC now owns 23,324 shares of the company’s stock worth $1,678,000 after purchasing an additional 152 shares during the last quarter. Institutional investors own 57.41% of the company’s stock.
More Altria Group News Here are the key news stories impacting Altria Group this week:
Positive Sentiment: Altria outperformed a weak market in the latest session, indicating continued demand for its relatively defensive, income-oriented profile. Altria Ascends While Market Falls Positive Sentiment: Several dividend-focused articles identify Altria as an attractive high-yield stock because of its approximately 6% yield, established tobacco brands, pricing power and strong cash flow. One screening article specifically emphasizes that Altria’s payout is supported by cash rather than merely a high headline yield. High-Yield Dividend Stocks With Cash to Spare Positive Sentiment: Altria’s dividend and cash-generation profile compare favorably with other income stocks, supporting its appeal to investors seeking reliable current income despite modest growth prospects. Altria’s 6.2% Dividend Yield Neutral Sentiment: Altria is scheduled to report third-quarter results later this month. Analysts expect single-digit earnings growth, making the report a near-term test of whether pricing and cost controls can offset declining cigarette volumes. Altria Earnings Preview Negative Sentiment: Bearish analysis argues that Altria’s rally has moved ahead of underlying earnings growth. The view is that recent EPS support has come partly from tax benefits and discount brands rather than stronger core Marlboro performance; a cited fair value of $63.80 implies downside from current levels. Altria Rally Ahead of Earnings Growth Negative Sentiment: Structural risks remain: fewer consumers smoke, and Altria must successfully expand smoke-free products to sustain earnings. This creates concern that the high dividend yield may reflect limited long-term growth as well as income value. Altria Strong Sell Analysis Wall Street Analyst Weigh In MO has been the topic of a number of research analyst reports. Wall Street Zen cut shares of Altria Group from a “buy” rating to a “hold” rating in a research note on Sunday, June 21st. UBS Group lifted their target price on Altria Group from $76.00 to $79.00 and gave the company a “buy” rating in a report on Tuesday, July 7th. Weiss Ratings restated a “buy (b)” rating on shares of Altria Group in a research report on Monday. Barclays decreased their price objective on shares of Altria Group from $64.00 to $58.00 and set an “underweight” rating on the stock in a research report on Tuesday, August 11th. Finally, BTIG Research assumed coverage on Altria Group in a research note on Tuesday, July 21st. They issued a “neutral” rating on the stock. Five equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Altria Group currently has a consensus rating of “Hold” and an average price target of $70.11. Check Out Our Latest Research Report on MO
Insider Transactions at Altria Group In other news, Director Kathryn McQuade acquired 1,500 shares of the firm’s stock in a transaction on Wednesday, September 9th. The stock was acquired at an average price of $67.62 per share, for a total transaction of $101,430.00. Following the completion of the acquisition, the director owned 114,929 shares in the company, valued at $7,771,498.98. This trade represents a 1.32% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.10% of the company’s stock.
Altria Group Trading Up 2.1% Shares of NYSE:MO opened at $73.05 on Thursday. The company has a market cap of $121.98 billion, a price-to-earnings ratio of 15.41, a price-to-earnings-growth ratio of 2.55 and a beta of 0.42. Altria Group, Inc. has a 12 month low of $54.70 and a 12 month high of $77.06. The company has a 50-day moving average price of $68.38 and a 200-day moving average price of $69.53.
Altria Group (NYSE:MO – Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $1.48 EPS for the quarter, missing analysts’ consensus estimates of $1.50 by ($0.02). Altria Group had a net margin of 33.99% and a negative return on equity of 315.29%. The business had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.35 billion. During the same quarter in the prior year, the company earned $1.44 EPS. Altria Group’s revenue was up 1.2% compared to the same quarter last year. Altria Group has set its FY 2026 guidance at 5.610-5.720 EPS. As a group, research analysts forecast that Altria Group, Inc. will post 5.67 EPS for the current fiscal year.
Altria Group Increases Dividend The company also recently announced a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Tuesday, September 15th were issued a dividend of $1.11 per share. This is a positive change from Altria Group’s previous quarterly dividend of $1.06. The ex-dividend date was Tuesday, September 15th. This represents a $4.44 dividend on an annualized basis and a dividend yield of 6.1%. Altria Group’s dividend payout ratio (DPR) is currently 93.67%.
About Altria Group (Free Report)
Altria Group, Inc is a U.S.-based holding company focused primarily on tobacco and nicotine products. Through its operating companies, Altria manufactures and markets cigarettes, cigars, smokeless tobacco, oral nicotine products and electronic cigarettes. Its portfolio includes well-known brands such as Marlboro cigarettes, Copenhagen and Skoal smokeless tobacco, Black & Mild cigars, NJOY e-cigarettes and on! nicotine pouches.
Altria’s principal businesses include Philip Morris USA, the largest U.S.
Read More Five stocks we like better than Altria Group Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know
Receive News & Ratings for Altria Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Altria Group and related companies with MarketBeat.com's FREE daily email newsletter.
Pro aktuální fiskální rok se u společnosti Altria (MO) očekává konsenzuální zisk 5,67 USD na akcii, což by meziročně představovalo nárůst o 4,6 %; odhad se za posledních 30 dní nezměnil.
Altria (MO - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this owner of Philip Morris USA, the nation's largest cigarette maker have returned +2.5%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Tobacco industry, which Altria falls in, has gained 3.4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Altria is expected to post earnings of $1.50 per share, indicating a change of +3.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $5.67 points to a change of +4.6% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $5.85 indicates a change of +3.1% from what Altria is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Altria.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Altria, the consensus sales estimate of $5.31 billion for the current quarter points to a year-over-year change of +1%. The $20.56 billion and $20.64 billion estimates for the current and next fiscal years indicate changes of +2.1% and +0.4%, respectively.
Last Reported Results and Surprise HistoryAltria reported revenues of $5.36 billion in the last reported quarter, representing a year-over-year change of +1.2%. EPS of $1.48 for the same period compares with $1.44 a year ago.
Compared to the Zacks Consensus Estimate of $5.36 billion, the reported revenues represent a surprise of -0.11%. The EPS surprise was -1.33%.
Over the last four quarters, Altria surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Altria is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Altria. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Altria Group (MO) podle analýzy čelí slabému růstu zisku; její férová hodnota 63,80 USD je přibližně o 11 % nižší než současná cena. Dividendu však podporuje silný volný peněžní tok.
SummaryAltria Group is rated a sell with a fair value of $63.80, about 11% below current price, due to weak underlying profit growth.Recent EPS growth is driven by tax refunds and discount brands, not core Marlboro performance; headline EPS beats may mask underlying weakness.The dividend remains secure, supported by strong free cash flow and a conservative balance sheet, but total return prospects are unattractive at the current valuation.Key metrics to watch are smokeable OCI growth excluding refunds, Marlboro share trends, and management’s guidance or buyback updates post-Q3. SolStock/E+ via Getty Images
Altria Group (MO) is one of the more unexpected winners of 2026, and in less than three weeks, we'll see if the business can keep up with the stock. The Marlboro manufacturer is scheduled to report its
95 Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Altria Group zvýšila výhled zisku na akcii (EPS) pro rok 2026 na 5,61–5,72 USD, přesto očekává utlumený růst tržeb kvůli nepříznivým podmínkám v odvětví.
SummaryMO remains a hold as the risk-to-reward ratio is less attractive following a valuation shift and ongoing segment challenges. MO’s oral tobacco segment, especially on!, shows modest growth but remains a small contributor, while earlier brands continue to decline. Management raised 2026 EPS guidance to $5.61–$5.72, signaling confidence, but top-line growth expectations remain muted amid industry headwinds. I value MO’s robust dividend and buyback program, but prefer to await a pullback before adding to my position. krblokhin/iStock Editorial via Getty Images
I love Altria Group (MO). It's one of the first dividend businesses I've ever bought. I keep adding to my position from time to time. I mean, the last time I added was almost a year
5.79K Followers
Analyst’s Disclosure: I/we have a beneficial long position in the shares of PM, MO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The information, opinions, and thoughts included in this article do not constitute an investment recommendation or any form of investment advice.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Altria má sice dividendový výnos 6,6 %, ale její hlavní byznys klesá a vlastní kapitál je záporný ve výši 3,2 miliardy USD. Dividenda už spolyká asi 78 % až 79 % upraveného EPS pro rok 2026.
Altria's 6.6% yield and 60 consecutive raises look bulletproof until you dig into what sits beneath them: a shrinking core business, a failed smoke-free pivot, and a balance sheet with liabilities that dwarf its assets.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Altria (NYSE:MO | MO Price Prediction) has more risk than its yield suggests. The yield is easy to like. A forward dividend of $4.44 a share against a $66.94 stock price works out to about 6.6%, and the board just raised the quarterly payout to $1.11. To a retiree, that looks like a reliable paycheck. Behind it sit a shrinking core business, a smoke-free strategy that keeps losing ground, and a balance sheet with no buffer.
Cigarette Volumes Keep Falling, and Price Hikes Are Covering the Gap Domestic cigarette shipment volume fell 10.0% in 2025. Marlboro’s retail share dropped 1.4 points to 39.7% in Q1 2026, then lost another 1.5 share points year over year in Q2 as discount share grew 2.6 share points. Altria fills the hole with price. Marlboro’s retail price rose about 7% in Q2. That strategy depends on smokers who, by management’s own account, are stretched. Altria’s chief executive told analysts in July, “The consumer remains under pressure.”
Altria Is Losing the One Category That Is Growing Altria took $2.2 billion in NJOY e-vapor impairment charges in 2025, and NJOY ACE has no announced return date. In nicotine pouches, which reached 58.1% of U.S. oral tobacco, on! saw its category share fall 4.2 points to 13.4% in Q1 2026, down from 16.7% in Q2 2025. on! shipments then dropped 4.2% in Q2. Rivals are getting the growth Altria needs.
Dividend Coverage Has Thinned and the Balance Sheet Offers No Buffer Altria paid $7.0 billion in dividends in 2025 against net income of $6.95 billion. Stockholders’ equity stood at negative $3.2 billion in Q1 2026, with total liabilities of $37.7 billion above total assets of $34.6 billion. The forward dividend uses up about 78% to 79% of 2026 adjusted EPS guidance of $5.61 to $5.72, which implies just 3.5% to 5.5% growth, partly helped by buybacks. Even the Q1 revenue jump of 20.1% leaned on 610 million contract-manufactured export sticks.
Bulls point to the record. The 2025 raise was Altria’s 60th increase in 56 years, and debt-to-EBITDA stands at a manageable 1.9 times. That run was built on pricing power over a shrinking unit base, and that power weakens as smokers trade down. A yield this high usually means the market suspects something, and we broke down the seven warning signs that a payout is about to be cut in a free dividend trap guide. Shares are also up 21.73% year to date, so buyers today pay more for the same declining business.
Philip Morris Offers a Better-Built Route to Tobacco Income Among tobacco peers, Philip Morris International (NYSE:PM) has the growth engine Altria lacks. Smoke-free products made up about 42% of its Q2 2026 net revenue, revenue grew 10.37%, and 2026 adjusted EPS guidance calls for 9.5% to 11.5% growth. It also has negative equity of $6.66 billion, so its edge rests entirely on growth. Still, its dividend is backed by an expanding business.
Watch on! pouch share and Marlboro retail share in the next report, because a stop in both declines for several straight quarters would signal the core business is stabilizing.
Contact [email protected] for any questions or corrections.
Philip Morris získává asi 42 % čtvrtletních čistých tržeb z bezdýmných produktů a na 109 trzích dál rozšiřuje IQOS, ZYN a VEEV. Altria mezitím čelí poklesu domácích objemů cigaret o 3,2 %.
Key Takeaways Philip Morris gets about 42% of quarterly net revenues from smoke-free products across 109 markets.Altria's cigarette brands held 45.5% U.S. retail share, while domestic cigarette volumes fell 3.2%.MO leans on U.S. nicotine scale while expanding smoke-free products through Helix and on! PLUS. Altria Group, Inc. (MO - Free Report) and Philip Morris International Inc. (PM - Free Report) approach the tobacco market from notably different positions, despite sharing roots in traditional nicotine products. Altria is centered on the U.S. market, where its scale in cigarettes and oral tobacco continues to underpin the business. At the same time, the company is investing in newer nicotine formats as changing consumer habits reshape demand across the domestic tobacco landscape.
Philip Morris has built a more geographically diversified business, with smoke-free products accounting for a substantially larger portion of its revenue mix. Its expansion in heated tobacco and oral nicotine has widened the company’s growth avenues and altered its revenue mix. This makes the MO-PM comparison less about two conventional tobacco companies and more about how two different strategies are adapting to the industry’s long-term transition.
Let’s take a closer look at how the two companies stack up.
The Case for Altria StockAltria’s market position remains anchored by scale in U.S. nicotine, led by Marlboro and a broad smokeable portfolio. Its cigarette brands held 45.5% retail share in the second quarter of 2026, while Marlboro commanded 59.6% of the premium segment. Smokeable adjusted OCI reached $3 billion, with a 64.8% margin, reinforcing the segment’s importance to earnings.
The company is using a total-portfolio revenue growth management strategy to address different adult nicotine consumer segments. Marlboro remains the premium anchor, Cowboy Cut targets value-sensitive premium smokers and Basic serves discount demand. PM USA supported Basic with targeted promotions in roughly 35,000 stores, using data analytics to refine investments while protecting broader portfolio economics.
Altria is also expanding its smoke-free presence through Helix and on!. The Oral Tobacco Products segment held 29% retail share in the second quarter, while on! PLUS reached about 120,000 stores. Growth efforts include premium retail visibility, trial programs, live events, paid social media, higher nicotine strengths, new flavors and NICOSILK soft-pouch technology.
However, challenges remain concentrated in category decline, consumer pressure and regulatory execution. Domestic cigarette volumes fell 3.2% in the second quarter, while Marlboro’s total-category share declined as discount demand increased. Oral Tobacco Products segment shipment volumes also declined, while illicit e-vapor products remained prevalent. Management continues to emphasize pricing, targeted portfolio investments, smoke-free innovation and enforcement against illicit products.
The Case for Philip Morris StockPhilip Morris combines global cigarette scale with a rapidly expanding smoke-free franchise. In the second quarter of 2026, its international cigarette category share held at 25.3%, while Marlboro matched a record 11% share. Smoke-free products represented about 42% of quarterly net revenues, highlighting the growing contribution of next-generation products alongside its established combustible tobacco business worldwide.
The company’s strategy centers on a multicategory smoke-free platform led by IQOS, ZYN and VEEV. Smoke-free products were available in 109 markets, while international smoke-free revenues rose 11.8% organically. Growth was supported by IQOS, expanding VEEV adoption and broader ZYN availability, giving PM multiple formats to address evolving preferences among key legal-age nicotine consumers across geographies.
Brand positioning is increasingly supported by portfolio segmentation and product innovation. ZYN held roughly 57% U.S. nicotine-pouch retail value share, while ZYN ULTRA and additional planned strength variants are broadening its ability to address consumer preferences. VEEV became Europe’s leading closed-pod brand and IQOS continued expanding through tiered consumables, new devices and technology-led offerings that deepen engagement with legal-age adult users.
Looking ahead, management expects 2026 adjusted EPS growth of 9.5-11.5%, or 7.5-9.5% excluding favorable currency effects. Philip Morris also projects high-single-digit smoke-free shipment growth. The outlook reflects the company’s strategy of expanding its smoke-free portfolio while leveraging pricing, scale and resilient combustible operations to support earnings growth.
MO vs. PM: How Do the Estimates Stack Up?The Zacks Consensus Estimate for Altria’s 2026 and 2027 EPS has remained unchanged in the past 30 days at $5.67 and $5.84, respectively. The consensus estimate for MO’s 2026 and 2027 EPS indicates a year-over-year increase of around 4.6% and 3%, respectively.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Philip Morris’ 2026 and 2027 EPS has been revised upward by 5 cents and 6 cents, respectively, over the past 30 days to $8.38 and $9.22. The consensus mark for PM’s 2026 and 2027 EPS implies year-over-year growth of 11.1% and 10%, respectively.
Image Source: Zacks Investment Research
MO & PM: A Look at Past-Year Stock PerformanceOver the past year, Altria’s shares have climbed 5.2%, trailing both Philip Morris and the industry, which gained 18.9% and 10.8%, respectively, over the same period.
Image Source: Zacks Investment Research
MO vs. PM: A Peek Into Stock ValuationAltria is trading at a forward 12-month price-to-earnings (P/E) ratio of 11.92, above its one-year median of 11.80. In comparison, Philip Morris trades at a forward P/E of 21.52, also above its one-year median of 20.15.
Image Source: Zacks Investment Research
MO vs. PM: Which Is the Better Bet Now?Philip Morris emerges as the stronger growth-oriented name in this comparison, supported by faster projected earnings growth, positive estimate revisions, stronger past-year share performance and an expanding smoke-free portfolio. Altria retains scale and premium leadership in U.S. tobacco, but slower earnings growth and ongoing cigarette-volume pressure temper its momentum. Although PM trades at a richer valuation, its global diversification and accelerating smoke-free transition provide a broader growth platform.
PM currently has a Zacks Rank #2 (Buy), while MO carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Altria rozšířila on! PLUS do zhruba 120 000 obchodů, což pokrývá asi 90 % objemu nikotinových produktů. Retailový podíl značky ve 2. čtvrtletí vzrostl na 8,6 %.
Key Takeaways Altria's on! PLUS reached about 120,000 stores, covering roughly 90% of nicotine-product volume.on! retail share rose to 8.6% in Q2, while first-half shipment volume increased 5.1%.New strengths and flavors are planned for the second half of 2026, broadening the on! PLUS portfolio. Altria Group, Inc.’s (MO - Free Report) on! PLUS has moved into a broader phase of expansion after reaching about 120,000 stores nationwide in the second quarter of 2026. The retail footprint covers roughly 90% of nicotine-product volume, giving the brand substantial availability following its national rollout. The expansion is already contributing to on!’s performance, with retail share reaching 8.6% in the second quarter, up 0.8 share points sequentially and 0.3 share points year over year.
Volume trends also show the early contribution from on! PLUS. Reported on! shipment volume was 49.9 million cans in the second quarter, down 4.2% year over year because of trade inventory movements. However, first-half shipment volume increased 5.1%, reflecting the early impact of the on! PLUS expansion. Early retail data also indicated incremental volume contributions and encouraging repeat-purchase rates. Brand-building investments supported awareness, with on! brand awareness rising to 57% from 53% among adult nicotine consumers aged 21-54 in the first half.
The next expansion phase centers on product variety. Shipments of 12-milligram on! PLUS resumed in Florida, North Carolina and Texas in three flavors, with national expansion planned for the third quarter. Additional flavors across 6, 9 and 12-milligram strengths, beginning with Blueberry Mint and Mango Pineapple, are planned for the fourth quarter. These additions broaden the portfolio beyond the initial rollout and extend the brand’s presence across strengths and flavors.
MO’s on! PLUS Faces Expanding Competition in Nicotine PouchesPhilip Morris International Inc. (PM - Free Report) is strengthening its U.S. nicotine pouch position through ZYN. In the second quarter of 2026, ZYN shipments rose 1.8% to 2.9 billion pouches, while offtake was flat to slightly higher year over year. Philip Morris also launched 9 and 11-milligram ZYN ULTRA moist variants. In the third quarter, Philip Morris plans 1.5 and 8-milligram dry variants and higher U.S. investment.
Turning Point Brands, Inc. (TPB - Free Report) is also building momentum in nicotine pouches through FRE and ALP. In the second quarter of 2026, Modern Oral net sales surged 128% to $68.4 million and represented 48% of total company net sales. Turning Point Brands is expanding retail distribution, with chain-store count expected to rise 70% year over year by 2026-end. To support its Modern Oral brands, Turning Point Brands is also investing in sales and marketing.
Altria’s Price Performance, Valuation & EstimatesShares of Altria have gained 0.5% in the past month compared with the industry’s growth of 1%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.87X, down from the industry’s average of 15.18X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s 2026 and 2027 earnings implies year-over-year growth of 4.6% and 3%, respectively.
Altria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nikotinové sáčky tvořily ve 2. čtvrtletí 2026 už 59,9 % americké kategorie orálního tabáku, meziročně o 8,1 procentního bodu více. Altria zvýšila podíl on! v celé kategorii na 8,6 % a v první polovině roku se objem zvýšil o 5,1 % na 96,1 milionu plechovek.
Key Takeaways Nicotine pouches reached 59.9% of the U.S. oral tobacco category in Q2 2026, up 8.1 points year over year.on! retail share of the oral tobacco category up 8.6%, while first-half volume rose 5.1% to 96.1M cans.on! PLUS reached 120,000 stores nationwide, backed by trial offers and broader promotional activity. Altria Group, Inc. (MO - Free Report) is seeing nicotine pouches take a much larger role in the U.S. oral tobacco market as the category continues to shift toward this format. In the second quarter of 2026, the overall nicotine pouch category accounted for 59.9% of the oral tobacco category, up 8.1 percentage points year over year and 1.8 points sequentially. Total oral industry volume was estimated to have increased 6% in the first half, primarily driven by oral nicotine pouch growth.
Within this expanding category, Altria’s on! brand improved its position during the quarter. Its share of the total oral tobacco category reached 8.6%, up 0.3 percentage points year over year and 0.8 points sequentially. MO’s share of the nicotine pouch category was 14.4%, down 1.7 points year over year but up 1 point sequentially.
Shipment trends were mixed. on! reported second-quarter volume of 49.9 million cans, down 4.2% from a year earlier due to trade inventory movements. First-half volume, however, rose 5.1% to 96.1 million cans as on! PLUS expanded nationally. Estimated retail takeaway volume increased to 47.2 million cans in the second quarter from 40.8 million in the first quarter.
At the same time, the expansion has come with higher investment. on! PLUS reached 120,000 stores nationwide, supported by introductory trial offers and broader promotional activity. These efforts reflect Altria’s ongoing push to strengthen the brand’s presence as nicotine pouches continue to account for a larger share of the oral tobacco category.
MO Faces Competition in the Growing Nicotine Pouch MarketPhilip Morris International Inc. (PM - Free Report) is also active in the expanding U.S. nicotine pouch category through ZYN. In the second quarter of 2026, Philip Morris reported ZYN U.S. shipments of 2.9 billion pouches, up 1.8% year over year, while ZYN retained around 57% retail value share. Philip Morris also broadened the portfolio with ZYN ULTRA and additional strength and flavor variants.
Turning Point Brands, Inc. (TPB - Free Report) is also benefiting from the shift toward nicotine pouches through its Modern Oral portfolio. With Modern Oral reaching 48% of Turning Point Brands’ net sales, the category reported $68.4 million in second-quarter 2026, up 128% year over year. Turning Point Brands is also investing in retail distribution, sales capabilities and brand building for FRE and ALP.
Altria’s Price Performance, Valuation & EstimatesShares of Altria have gained 6.5% in the past six months compared with the industry’s growth of 8.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.82X, down from the industry’s average of 15.05X.
Altria ve 2. čtvrtletí 2026 dosáhla u kouřitelných produktů cenového výnosu 4,5 %, taženého značkou Marlboro; jeho maloobchodní cena byla meziročně asi o 7 % vyšší. Růst značky Basic ale zvýšil podíl levnějšího mixu.
Key Takeaways Altria's smokeable products price realization reached 4.5%, while Marlboro's retail price rose about 7%. Basic's growth contributed to a higher discount mix, partly offsetting Marlboro's pricing strength. Marlboro retained a strong premium position, while rising discount participation weighed on MO's overall mix. Altria Group, Inc. (MO - Free Report) continued to benefit from pricing strength in the smokeable products business in the second quarter of 2026. Smokeable products price realization came in at 4.5%, supported by strong net pricing for Marlboro and partly offset by the mix impact from Basic’s volume growth. Marlboro’s retail price was about 7% higher year over year in the quarter.
This pricing came against continued volume pressure. The smokeable products segment reported domestic cigarette shipment volume decreased 3.2%, while shipments adjusted for trade inventory movements declined an estimated 4.5%. Even so, smokeable products revenues net of excise taxes increased 2%, adjusted OCI rose 2.4% to $3.018 billion, and adjusted OCI margin expanded 0.3 percentage points to 64.8%.
The pricing picture also reflects the balance between Marlboro’s premium pricing and the growing discount mix. Marlboro’s overall retail share fell 1.5 percentage points to 39.5%, although its share of the premium segment remained 59.6%, unchanged from a year earlier. Meanwhile, the cigarette industry’s discount retail share increased 2.6 percentage points to 33.8%. Basic’s retail share reached 2.9% in the second quarter of 2026, up from 0.6% in the second quarter of 2025, contributing to a greater discount mix. Reported shipment volume for Altria’s discount cigarette brands, including L&M and Basic, rose 67.3% year over year.
Taken together, Marlboro pricing continued to support smokeable products performance, while higher discount participation affected the overall mix. Basic’s volume growth partly offset the benefit from strong Marlboro pricing in the quarter.
How Altria Compares With Philip Morris and TPBPhilip Morris International Inc. (PM - Free Report) also demonstrated the strength of pricing in its combustible business in the second quarter of 2026. While helping international combustibles net revenues grow 6.4% organically despite unfavorable geographic mix, Philip Morris reported nearly 10% pricing variance in the quarter. Strong pricing, coupled with stable category share, supported profitability, highlighting how Philip Morris continues to offset mix-related pressures through disciplined pricing.
Turning Point Brands, Inc. (TPB - Free Report) continues to rely on disciplined margin management as its portfolio mix evolves. In the second quarter of 2026, Turning Point Brands expanded Zig-Zag adjusted gross margin to 57.3% from 49.1% a year earlier, driven primarily by favorable product mix. Turning Point Brands also benefited from favorable cost dynamics, helping support consolidated gross profit amid shifting portfolio dynamics.
Altria’s Price Performance, Valuation & EstimatesShares of Altria have gained 0.6% in the past three months compared with the industry’s growth of 2.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 12.19X, down from the industry’s average of 15.23X.
Altria keeps raising its dividend even as Americans smoke fewer cigarettes every year, and the math behind that trick depends entirely on one metric that is starting to wobble.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Volumes Down, Payout Up Altria Group (NYSE:MO | MO Price Prediction) presents one of the sharpest tensions in dividend investing. U.S. cigarette shipment volumes decline steadily, yet the payout keeps climbing.
The board lifted the quarterly dividend to $1.11 from $1.06, extending what the company calls its 60th dividend increase in 56 years. That places the annualized forward rate at $4.44 per share against a share price of $68.98, a yield near 6.16%.
Cigarette volumes cut the other way. Reported full-year domestic shipments fell 10.0%, industry declines have run in mid-to-high single digits across reported quarters, and Marlboro’s retail share has slipped to 39.7%.
Pricing Power Is the Engine Altria raises the price per pack faster than smokers walk away. Smokeable adjusted operating company income margin expanded to 65.1%, with smokeable adjusted OCI up 6.3% to $2.68 billion even as sticks sold declined. Marlboro’s retail price ran up about 7% versus a comparable quarter, with smokable price realization of 4.5%.
Buybacks amplify the effect. The board doubled its repurchase authorization to $2 billion, and $8 billion was returned to shareholders through dividends and buybacks combined in a single fiscal year.
CEO Billy Gifford framed the cash math directly: “We delivered a strong start to the year, growing adjusted diluted EPS by 7.3% in the first quarter. Our highly cash-generative businesses supported significant returns to shareholders through dividends and share repurchases, while we continued to invest in support of our Vision.”
Where the Engine Strains Discount cigarette share expanded to 33.3%, up 2.4 points, as smokers traded down. Management pointed to macro pressure: “The consumer remains under pressure. Gas prices and inflation remain elevated.” Illicit disposable e-vapor products pull volume outside the taxed market. Altria also carries negative stockholders’ equity of ($3.2B), a byproduct of aggressive capital return. A 6% yield on a business shipping 10% fewer cigarettes a year is exactly the setup we walk through in a free guide to the seven warning signs a big yield is about to be cut.
Smoke-Free Results So Far Note that on! nicotine pouch shipment volumes grew 17.6%, yet on!’s share of the nicotine pouch category fell to 13.4%, down 4.2 points, inside a segment that now represents 58.1% of U.S. oral tobacco. NJOY ACE will not return due to an ITC exclusion order, and a $1.30 billion non-cash impairment hit the e-vapor unit.
What Would Break the Model Management targets mid-single digit annual dividend per share growth and guides adjusted EPS to $5.56 to $5.72 off a base of $5.42. Gifford called the dividend Altria’s “primary vehicle” for returns.
The tell is smokeable OCI margin. As long as pricing offsets lost sticks and that mid-60s margin holds, the engine funding the check keeps running. Compression there is the signal the model is finally breaking.
Contact [email protected] for any questions or corrections.
Amundi ve 2. čtvrtletí zvýšila podíl v Altria Group o 9,9 % na 1 252 381 akcií v hodnotě 90,109 milionu USD. Altria zároveň zvedla čtvrtletní dividendu na 1,11 USD na akcii.
Amundi lifted its stake in Altria Group, Inc. (NYSE:MO – Free Report) by 9.9% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 1,252,381 shares of the company’s stock after purchasing an additional 112,341 shares during the period. Amundi owned about 0.08% of Altria Group worth $90,109,000 at the end of the most recent quarter.
Several other institutional investors also recently added to or reduced their stakes in MO. Cornerstone Planning Group LLC raised its position in Altria Group by 5.8% during the 1st quarter. Cornerstone Planning Group LLC now owns 2,619 shares of the company’s stock valued at $191,000 after purchasing an additional 143 shares in the last quarter. Angeles Wealth Management LLC grew its position in shares of Altria Group by 1.3% during the 2nd quarter. Angeles Wealth Management LLC now owns 11,239 shares of the company’s stock worth $821,000 after buying an additional 146 shares in the last quarter. Bernardo Wealth Planning LLC grew its position in shares of Altria Group by 4.6% during the 2nd quarter. Bernardo Wealth Planning LLC now owns 3,379 shares of the company’s stock worth $243,000 after buying an additional 149 shares in the last quarter. Old Peak Finance LLC increased its stake in shares of Altria Group by 1.3% during the second quarter. Old Peak Finance LLC now owns 11,920 shares of the company’s stock valued at $858,000 after buying an additional 151 shares during the period. Finally, Joel Isaacson & Co. LLC increased its stake in shares of Altria Group by 0.7% during the second quarter. Joel Isaacson & Co. LLC now owns 23,324 shares of the company’s stock valued at $1,678,000 after buying an additional 152 shares during the period. Hedge funds and other institutional investors own 57.41% of the company’s stock.
Wall Street Analyst Weigh In A number of analysts recently weighed in on the stock. BTIG Research began coverage on shares of Altria Group in a research note on Tuesday, July 21st. They issued a “neutral” rating for the company. UBS Group raised their target price on shares of Altria Group from $76.00 to $79.00 and gave the company a “buy” rating in a research report on Tuesday, July 7th. Jefferies Financial Group boosted their price target on shares of Altria Group from $50.00 to $60.00 and gave the company an “underperform” rating in a report on Wednesday, May 27th. Wall Street Zen cut shares of Altria Group from a “buy” rating to a “hold” rating in a research report on Sunday, June 21st. Finally, Barclays dropped their price objective on shares of Altria Group from $64.00 to $58.00 and set an “underweight” rating on the stock in a research note on Tuesday, August 11th. Five equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $70.11.
View Our Latest Stock Analysis on MO Altria Group Price Performance Shares of NYSE MO opened at $67.88 on Thursday. Altria Group, Inc. has a 1-year low of $54.70 and a 1-year high of $77.06. The business has a fifty day moving average price of $69.56 and a 200 day moving average price of $69.10. The stock has a market capitalization of $113.34 billion, a P/E ratio of 14.32, a price-to-earnings-growth ratio of 2.42 and a beta of 0.45.
Altria Group (NYSE:MO – Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $1.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.50 by ($0.02). The company had revenue of $5.36 billion during the quarter, compared to analysts’ expectations of $5.35 billion. Altria Group had a net margin of 33.99% and a negative return on equity of 315.29%. Altria Group’s revenue for the quarter was up 1.2% on a year-over-year basis. During the same quarter last year, the firm earned $1.44 EPS. Altria Group has set its FY 2026 guidance at 5.610-5.720 EPS. As a group, equities research analysts anticipate that Altria Group, Inc. will post 5.67 earnings per share for the current fiscal year.
Altria Group Increases Dividend The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Tuesday, September 15th will be paid a dividend of $1.11 per share. This is a boost from Altria Group’s previous quarterly dividend of $1.06. The ex-dividend date is Tuesday, September 15th. This represents a $4.44 annualized dividend and a dividend yield of 6.5%. Altria Group’s dividend payout ratio (DPR) is presently 89.45%.
Altria Group Profile (Free Report)
Altria Group, Inc (NYSE: MO) is a tobacco and nicotine company headquartered in Richmond, Virginia. Through its operating companies, Altria develops, manufactures and markets cigarettes, cigars, oral tobacco products, nicotine pouches and electronic vaping products, with its business focused primarily on the United States.
Altria’s smokeable products portfolio includes Marlboro cigarettes, which are manufactured and marketed in the U.S. by Philip Morris USA, as well as Black & Mild cigars through John Middleton.
Featured Stories Five stocks we like better than Altria Group Qualcomm’s Data Center Bet Looks More Real After Amazon’s AI Deal GE Aerospace’s $11.75B Deal Puts Howmet Aerospace in Focus Casey’s Post-Earnings Drop May Give Investors a Better Entry Into a Quality Retailer Sovereign AI: Palantir and Nebius Cut the Cloud Cord Want to see what other hedge funds are holding MO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Altria Group, Inc. (NYSE:MO – Free Report).
Receive News & Ratings for Altria Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Altria Group and related companies with MarketBeat.com's FREE daily email newsletter.
Altria uvádí, že prémiový segment tvoří asi 85 % ziskovosti v cigaretovém segmentu, takže klíčovým tahounem zůstává Marlboro. Jeho podíl v celé kategorii ve 2. čtvrtletí 2026 klesl o 1,5 procentního bodu na 39,5 %.
Key Takeaways Altria's premium segment accounts for about 85% of cigarette profitability, making Marlboro a key driver.Marlboro's total cigarette share fell 1.5 points to 39.5% as discount retail share rose to 33.8%.Basic gained 2.3 points to 2.9%, while smokeable adjusted OCI rose 2.4% to $3.02 billion. Altria Group, Inc. (MO - Free Report) is keeping the cigarette strategy centered on the premium segment, which accounts for about 85% of profitability in the cigarette category. That makes Marlboro’s position especially important as cigarette consumers continue to trade down toward discount offerings amid pressure on discretionary income.
In the second quarter of 2026, Marlboro held a 59.6% share of the premium segment, unchanged from a year earlier and up 0.1 percentage point sequentially. However, Marlboro’s share of the total cigarette category fell 1.5 percentage points year over year to 39.5%. At the same time, industry discount retail share rose 2.6 percentage points to 33.8%, reflecting continued trade-down among adult nicotine consumers.
Altria is addressing the shift toward discount cigarettes through a broader PM USA portfolio strategy. Basic’s retail share increased 2.3 percentage points year over year to 2.9% in the second quarter, while targeted promotional support expanded to roughly 35,000 stores during the first half of 2026. The strategy seeks to participate in the discount segment while limiting the impact on Marlboro.
Despite the mix shift, smokeable price realization was 4.5% in the quarter, supported by strong Marlboro net pricing. Smokeable products adjusted OCI increased 2.4% to $3.02 billion, while adjusted OCI margin expanded 0.3 percentage point to 64.8%. The premium segment therefore remains central to cigarette profitability even as discount participation grows.
How Altria Compares With Philip Morris and TPBPhilip Morris International Inc. (PM - Free Report) also showed premium-brand resilience in second-quarter 2026. While international combustible pricing rose 10%, Philip Morris’ Marlboro share reached a record 11% of the international cigarette category, up 0.3 percentage points year over year. Philip Morris also maintained a 25.3% cigarette category share, with international combustible gross profit increasing 8% organically in the quarter despite unfavorable geographic mix.
Turning Point Brands, Inc. (TPB - Free Report) is also leaning on premium positioning across nicotine products. While Modern Oral investments focus on shelf placement, retail visibility and brand equity to build long-term premium potential, Turning Point Brands described Stoker’s as the segment’s only truly premium product for value-oriented consumers. Turning Point Brands reported Stoker’s segment net sales up 54.5%, with adjusted gross profit rising 40.7% year over year.
Altria’s Price Performance, Valuation & EstimatesShares of Altria have fallen 3.4% in the past three months against the industry’s growth of 2.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.90X, down from the industry’s average of 14.92X.
Altria zvýšila čtvrtletní dividendu na 1,11 USD na akcii, už po 60. navýšení za 56 let. Roční výplata 4,44 USD dává forwardový dividendový výnos kolem 6,4 %.
Altria just handed shareholders a bigger check for the 60th time in 56 years, but negative operating cash flow last quarter and a vape unit bleeding billions in impairments raise a real question about whether the streak has a price.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Altria just wrote another check to shareholders, and it’s a bigger one. Altria (NYSE:MO | MO Price Prediction) declared a $1.11 per share quarterly dividend with an ex-dividend date of September 15, 2026 and a payment date of October 9, 2026. That is a raise from the prior $1.06 quarterly rate, pushing the annualized forward payout to $4.44. Against a current share price of $69.85, the forward yield sits near 6.4%. The question this scorecard tackles: does the cash actually support the check?
Why the Dividend Earns High Marks Altria just logged its 60th dividend increase in the past 56 years, putting it firmly in Dividend King territory (we ranked ten of them by valuation in a free report here: 10 Dividend Kings to Buy Now and Hold Forever), and management called out that $3.6 billion was paid in dividends in the first half of 2026 alone. Coverage looks solid at the annual level. For fiscal 2025, operating cash flow was $9.29 billion against dividend payouts of $6.96 billion, a roughly 75% cash payout that leaves room for the $335 million spent on buybacks in the first half.
The core smokable business is still a cash machine powering this dividend. Adjusted smokable OCI margins ran 64.9% in the first half, price realization hit 4.5% in Q2, and Marlboro’s premium share held steady at 59.6%. Debt-to-EBITDA at 1.9 times sits right at management’s roughly 2x target.
Cracks in the Cash Machine Domestic cigarette shipments fell 10.0% in full-year 2025, and even after adjusting for trade inventories, Q2 2026 volumes still declined 4.5%. Marlboro’s total retail share slipped 1.5 share points year over year. The next-generation bets have bruises: NJOY absorbed $2.2 billion in non-cash impairments, and oral tobacco adjusted OCI fell 8% in Q2 as on! pouch investment ramped.
Operating cash flow was negative $51 million in Q2 2026 against a $1.54 billion dividend payout. That pattern (weak Q2 operating cash flow) has now happened in 2021, 2022, 2024, and 2026, so timing rather than solvency is the likely explanation. Still, negative stockholders’ equity of negative $3.2 billion is a real balance-sheet flag.
Final Grade: B Full-year 2026 adjusted EPS guidance of $5.61 to $5.72 comfortably covers the $4.44 annualized dividend, and management flagged the payout as its “primary vehicle” for shareholder returns. The 6% yield is real, the streak is real, and cash coverage works today. The B, rather than an A, reflects a shrinking core, an impairment-scarred vape unit, and a pouch business still spending to defend share. Income investors get paid well while management races the volume clock.
Contact [email protected] for any questions or corrections.
Chris Lange
Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
Altria podala žalobu na americký úřad FDA a chce, aby soud přinutil úřad přepracovat proces schvalování tabákových výrobků. Firma tvrdí, že současný systém brzdí růst a drží její nikotinové sáčky On! v regulačním limbu.
Marlboro-maker Altria (MO.N) on Wednesday sued the U.S. Food and Drug Administration, seeking to force the agency to overhaul a product review process that tobacco companies say has stifled their growth in the key U.S. market, a legal filing showed.
Under U.S. law, the FDA must review new tobacco products before they can be sold, assessing whether they provide a net public health benefit, such as helping smokers quit, without creating significant risk of new addiction among young people.
But the system has been plagued by a huge backlog of applications and a booming illegal market of products sold without FDA authorisation.
Altria's lawsuit marks the latest industry challenge to a regime that has become one of the biggest obstacles facing tobacco companies in the $22 billion U.S. market. It follows an extensive lobbying campaign targeting President Donald Trump.
Filed in the federal court in Lubbock, Texas, Altria's complaint said the FDA's approach had buried products such as its On! nicotine pouches in regulatory red tape, while allowing foreign competitors that ignored the rules to gain market share.
The plaintiffs, including two Altria subsidiaries and the Texas Food and Fuel Association, asked the court to set aside the current system and require the FDA to develop a new one.
Their arguments included that the FDA's approach violates a legal requirement that the agency decide on applications within 180 days of receiving them, a deadline Altria's complaint said the FDA has never met.
An FDA official said the agency was committed to facilitating access to less harmful alternatives for adult smokers, while protecting young people from the dangers of nicotine addiction and toxic exposure.
"FDA takes seriously this legal challenge ... and will carefully review the issues raised," the official said.
SOME APPLICATIONS DELAYED FOR YEARS
The agency has rejected tens of millions of applications for products such as vapes and nicotine pouches. Others have been under review for more than six years, hurting sales and market share at companies including Altria, Philip Morris International (PM.N) and British American Tobacco (BATS.L).
Tobacco companies have responded with lawsuits, threats to launch products without FDA permission and intensive lobbying of the Trump administration, aided by meetings, millions of dollars in donations to Trump's campaign, inauguration and White House ballroom project, and influential connections in Washington.
Those efforts have helped secure changes including the first marketing authorisations for flavoured vapes, a fast-track pathway for nicotine pouches and a plan under which the FDA would not prioritise enforcement against companies launching certain vapes or nicotine pouches without agency approval.
Altria's complaint argued that some of the FDA's recent changes bolster its case. Applications for Altria nicotine pouches in the fast-track programme, for example, remained under review despite the agency's target of deciding them by December 2025, the complaint said.
A company spokesperson said it filed the complaint ahead of a statutory time limit, in order to fix a system that has been "broken for a long time".
Altria Group zvýšila dividendu už po 61. za 57 let a dividendový výnos činí 6,18 %. Firma ale čelí meziročnímu poklesu objemu cigaret o 3,2 % v posledním čtvrtletí.
A Dividend King is a stock that has raised its dividend payout for 50 consecutive years or more. Very few companies can boast this enduring accomplishment. One of them is Altria Group (MO +1.59%). The tobacco/nicotine giant has raised its dividend for 57 straight years, and 61 times in total, due to the durability of cash flows generated by its cigarette business.
It now trades at a dividend yielding 6.18%. That means, if you have $10,000 invested in Altria Group stock, you will receive a cool $618 in dividends each year.
But does that make Altria Group stock a buy?
Premium Feature
Moneyball Superscore
52/100
Today's Change
(
1.59
%) $
1.09
Current Price
$
69.57
Dividend growth math The tobacco business has been fantastic due to its extraordinary pricing power through the decades. Packs of cigarettes -- along with other types of nicotine products -- have grown steadily above the rate of inflation, leading to growing cash flows for companies like Altria and its Marlboro brand.
This has allowed management to steadily grow its dividend per share payout to shareholders. In the last 10 years, Altria's dividend has grown by 74% cumulatively. For long-term shareholders, this can deliver growing income into your portfolio. An investor who bought at a 6.18% dividend yield 10 years ago would now be receiving $1,075 in annual dividend income.
Dividend growth like this has helped Altria Group outperform the stock indices. In the last five years, it has generated a total return of 104%, beating the S&P 500's 82%.
Image source: Getty Images.
A business struggling to grow Where Altria Group could run into struggles is its failure to pivot away from smokeable tobacco products like Marlboro or Black and Mild. Cigarette volumes were down 3.2% year over year last quarter and are expected to decline in the future.
Other tobacco giants have worked to replace their cigarette cash flows with healthier alternatives, such as nicotine pouches or electronic vapor. Altria Group is failing to make a dent with its new offerings, such as its on! nicotine pouch brand. Volumes for on! were down 4.2% year over year last quarter, despite a growing overall nicotine pouch category in the United States, and that is with minimal overall market share already.
Unless management can spring a miracle in new nicotine categories, the future of Altria's dividend payments will be from its legacy cigarette business. Specifically, its ability to keep raising prices on cigarette packs sold.
MO PE Ratio data by YCharts
Is Altria Group still a buy? Where Altria helps itself with dividend growth sustainability is its steady stock repurchase program. It has reduced shares outstanding by 14.4% cumulatively over the last 10 years through these buybacks, which will help grow earnings per share (EPS).
Importantly, for the dividend, a lower total number of outstanding shares will mean that Altria can raise its per-share dividend without increasing the total dollar amount paid to shareholders. This is important for a business whose overall revenue has barely budged in the last five years. You are not buying Altria Group for its growth, but its return of capital to shareholders.
The stock has done well in the last year, with the share price now at $69. It has a price-to-earnings ratio (P/E) of 14.5, which is generally higher than it has been in the last few years, but still, it has one of the fattest dividend yields of the entire market today. What investors need to decide is whether the long history of price hikes and dividend growth can continue for the next decade as well.
I don't think Altria Group stock is a screaming buy right now, but investors will probably do just fine buying today for long-term dividend income, despite the decline in its cigarette business.
Altria uvádí, že on! PLUS pohání růst tržního podílu: retailový podíl on! vzrostl na 8,6 % a produkt je už v asi 120 000 obchodech. Nová 12mg verze má přijít na celostátní trh ve 3. čtvrtletí 2026, zatímco nové příchutě Blueberry Mint a Mango Pineapple v silách 6, 9 a 12 mg mají začít ve 4. čtvrtletí 2026.
Key Takeaways Altria's on! PLUS drove a sequential retail share gain as nicotine pouches expanded their category presence.on! PLUS reached about 120,000 stores, while early repeat purchase rates were encouraging.New strengths and flavors are planned for the second half of 2026, broadening the on! PLUS portfolio. Altria Group, Inc.’s (MO - Free Report) on! PLUS is gaining early traction within its oral nicotine portfolio as the U.S. nicotine pouch category expands. In the second quarter of 2026, nicotine pouches represented 59.9% of the oral tobacco category, up 8.1 share points year over year. on! retail share reached 8.6%, rising 0.8 share points sequentially and 0.3 points from a year earlier, with the sequential increase driven by on! PLUS.
The product has also gained broad retail reach. Helix expanded on! PLUS to about 120,000 stores nationwide. Early data indicated that the product was resonating with existing on! users and consumers of competing nicotine pouch brands. Repeat purchase rates were encouraging, suggesting consumers valued the differentiated experience of the NICOSILK soft pouch. A new retail trade program also secured premium visibility and incremental fixture space for the product.
on! shipments were 49.9 million cans in the second quarter, down 4.2% due to trade inventory movements. However, first-half shipments increased 5.1%, reflecting the early impact of the on! PLUS national expansion.
The portfolio is set to broaden further. The 12-milligram version is planned for national expansion in the third quarter, while Blueberry Mint and Mango Pineapple extensions across 6, 9 and 12-milligram strengths are scheduled to begin in the fourth quarter. These additions will expand the on! PLUS offering, while introductory trial investments continue to accompany the rollout.
MO’s Nicotine Pouch Momentum Faces Growing Peer CompetitionPhilip Morris International Inc. (PM - Free Report) is strengthening its U.S. nicotine pouch position through ZYN. In the second quarter of 2026, ZYN shipments rose 1.8% to 2.9 billion pouches, while offtake was flat to slightly higher year over year. Philip Morris also launched 9 and 11-milligram ZYN ULTRA moist variants. In the third quarter, Philip Morris plans 1.5- and 8-milligram dry variants and higher U.S. investment.
Turning Point Brands, Inc. (TPB - Free Report) is also building momentum in nicotine pouches through FRE and ALP. In the second quarter of 2026, Modern Oral net sales surged 128% to $68.4 million and represented 48% of total company net sales. Turning Point Brands is expanding retail distribution, with chain-store count expected to rise 70% year over year by 2026-end. To support its Modern Oral brands, Turning Point Brands is also investing in sales and marketing.
Altria’s Price Performance, Valuation & EstimatesShares of Altria have fallen 1.1% in the past three months against the industry’s growth of 6.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.83X, down from the industry’s average of 15.40X.
Altria zvýšila spodní hranici výhledu upraveného EPS pro rok 2026 na 5,61 USD, zatímco horní hranice zůstala na 5,72 USD. Ve 2. čtvrtletí jí pomohly 4,5% cenové realizace u smokeable a marže 64,8 %.
Key Takeaways Altria raised the low end of 2026 adjusted EPS guidance to $5.61, keeping the $5.72 high end unchanged.MO's 4.5% smokeable price realization and 64.8% margin helped support the earnings outlook in Q2.Cigarette volumes fell 3.2%, while oral tobacco income dropped 8% and capital spending guidance increased. Altria Group, Inc. (MO - Free Report) missed second-quarter consensus expectations, but adjusted earnings still increased year over year and management raised the low end of its 2026 earnings outlook. That combination puts more weight on execution in the second half.
Pricing, smokeable margins and cigarette import and export benefits support the earnings path. Cigarette volume declines, weaker oral tobacco results and higher capital spending remain the main offsets.
Altria’s Q2 Miss Still Came With Earnings GrowthAdjusted second-quarter earnings were $1.48 per share, up 2.8% year over year but below the Zacks Consensus Estimate of $1.50. Higher adjusted operating companies income and a lower share count supported the increase.
Net revenues rose 0.1% to $6.11 billion. Revenues net of excise taxes increased 1.2% to $5.356 billion, below the consensus mark of $5.362 billion.
MO’s Narrower Guidance Raises the Earnings FloorAltria narrowed 2026 adjusted earnings guidance to $5.61-$5.72 per share from $5.56-$5.72. The revision leaves the upper end unchanged while lifting the lower end by 5 cents.
The new range implies 3.5-5.5% growth from adjusted earnings of $5.42 per share in 2025. Management narrowed the range after first-half adjusted earnings increased 4.9% to $2.80 per share.
Altria’s Pricing and Margins Support the OutlookSmokeable price realization was 4.5% in the second quarter, led by Marlboro pricing and partly offset by Basic mix. Adjusted smokeable operating companies income increased 2.4% to $3.02 billion, while margin expanded 30 basis points to 64.8%.
Management continues to expect a greater benefit from cigarette import and export activity in the second half than in the first half. It expects that benefit to be more balanced between the third and fourth quarters.
MO’s Volume and Cost Pressures Could Limit ProgressDomestic cigarette shipment volume declined 3.2% in the second quarter, or an estimated 4.5% after adjusting for trade inventory movements. Oral Tobacco Products revenues fell 5.3%, while adjusted operating companies income declined 8% as lower volume and higher promotional investment weighed on results.
Capital expenditure expectations increased to $375-$450 million from $300-$375 million. Peer execution also raises the competitive bar. Philip Morris International Inc. (PM - Free Report) said smoke-free products generated about 42% of first-half 2026 net revenues, while British American Tobacco p.l.c. (BTI - Free Report) reported 18% growth in first-half New Category revenues.
Altria’s Second-Half Estimates Set the Next TestThe Zacks Consensus Estimate calls for third-quarter earnings of $1.50 per share and fourth-quarter earnings of $1.40. The full-year 2026 earnings estimate stands at $5.67 per share.
The consensus sales estimates are $5.33 billion for the third quarter and $5.09 billion for the fourth quarter. Those figures provide the next operating benchmarks as investors assess whether pricing and second-half benefits are offsetting volume and spending pressure.
Image Source: Zacks Investment Research
MO’s Signals Keep the Guidance Reset in PerspectiveThe narrowed guidance provides a clearer 2026 earnings range, but the operating path still depends on pricing, margin discipline and the timing of second-half benefits. Volume pressure and weaker oral tobacco profitability leave less room for execution slippage.
MO currently carries a Zacks Rank #3 (Hold), a VGM Score of C, Value Score of C, Growth Score of C and Momentum Score of D. The Style Score framework favors A and B grades, particularly alongside Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks, while a Zacks Rank #3 can still support holding an existing position. MO’s C and D scores point to a more mixed near-term setup. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cigaretový byznys Altria ve 2. čtvrtletí klesl méně než trh: upravený objem spadl o 4,5 % proti odhadu 5 % v odvětví. Díky cenám vzrostl upravený provozní zisk o 2,4 % na 3,018 miliardy USD.
Key Takeaways Altria's adjusted cigarette volume fell 4.5% in Q2, compared with an estimated 5% decline for the industry.Basic gained retail share while Marlboro held 59.6% of the premium segment and edged up sequentially.Smokeable price realization reached 4.5%, helping lift adjusted operating companies income 2.4%. Altria Group, Inc.’s MO cigarette business is showing resilience despite continued pressure on U.S. smokers. In the second quarter of 2026, reported domestic cigarette shipment volume fell 3.2%. After adjusting for trade inventory movements, the decline was an estimated 4.5%, compared with an estimated 5% drop for the overall domestic cigarette industry. For the first half, Altria’s adjusted decline was about 4% compared with 5% for the industry.
The moderation was primarily tied to reduced cross-category movement between cigarettes and illicit-flavored disposable e-vapor products, even as inflation, elevated gas prices and other pressures continued to influence cigarette purchasing. The industry’s discount retail share rose 2.6 percentage points year over year in the second quarter. Against that backdrop, Basic’s retail share increased 2.3 points year over year and 0.3 points sequentially. Marlboro, meanwhile, held a 59.6% share of the premium segment, unchanged from a year earlier and up 0.1 point sequentially.
Pricing also helped offset volume pressure. Smokeable price realization was 4.5% in the quarter, supported by strong Marlboro pricing, while Marlboro’s retail price was about 7% higher year over year. Smokeable-products net revenues increased 0.7%, while revenues net of excise taxes rose 2%. Adjusted operating companies income advanced 2.4% to $3,018 million, with margin expanding 30 basis points to 64.8%, helped by higher pricing and higher refunds of taxes and duties on imported cigarettes. The combination of relatively better volume performance, stable premium-segment share and strong pricing helped Altria’s cigarette business limit the impact of continued industry-wide volume pressure.
Altria’s Cigarette Resilience Stands Out Against PeersPhilip Morris International Inc. (PM - Free Report) also showed resilience in its cigarette business, with international combustible cigarette volume increasing 1.1% in the second quarter of 2026. While Marlboro gained 0.3 percentage points to a record 11% share, Philip Morris’s cigarette category volume share remained stable at 25.3%. Philip Morris also delivered 10% pricing in international combustibles, supporting 9.8% net revenue growth.
Turning Point Brands, Inc. (TPB - Free Report) also showed strength in nicotine products as cigarette consumption shifts. In the second quarter of 2026, Turning Point Brands’ Modern Oral net sales jumped 128% year over year to $68.4 million, while gross sales rose 149%. Turning Point Brands’ Modern Oral business accounted for 48% of total revenues, up from 26% a year earlier, reflecting strong growth in nicotine pouches.
Altria’s Price Performance, Valuation & EstimatesShares of Altria have fallen 10.9% in the past three months compared with the industry’s decline of 3.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.37X, down from the industry’s average of 15.31X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s 2026 and 2027 earnings implies year-over-year growth of 4.6% and 3%, respectively.
Image Source: Zacks Investment Research
Altria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Altria rozšířila on! PLUS asi do 120 tisíc obchodů, což pokrývá zhruba 90 % objemu nikotinových produktů. Retailový podíl on! ve 2. čtvrtletí vzrostl na 8,6 %.
Key Takeaways Altria expanded on! PLUS to about 120,000 stores, covering roughly 90% of nicotine product volume.On! retail share reached 8.6% in Q2, up sequentially and year over year, driven by on! PLUS.Altria plans national 12-mg expansion in Q3 and new on! PLUS flavors across three strengths in Q4. Altria Group, Inc.’s (MO - Free Report) smoke-free strategy is increasingly centered on nicotine pouches, with on! PLUS emerging as a key part of that effort. In the second quarter of 2026, Helix expanded on! PLUS to about 120,000 stores, covering roughly 90% of nicotine product volume. The rollout is being supported by a broader retail program and additional line extensions.
The underlying category is also expanding. In the second quarter, the nicotine pouch category grew 8.1 share points and represented nearly 60% of the total oral tobacco category. For on!, reported shipment volume was 49.9 million cans, down 4.2% year over year, although first-half shipment volume rose 5.1%. The company attributed the second-quarter comparison partly to trade inventory movements and promotional activity in the prior-year period.
Retail performance offered another measure of the rollout. On! retail share reached 8.6% in the second quarter, up 0.8 percentage points sequentially and 0.3 percentage points from a year earlier, with the gain driven by on! PLUS. The next phase involves expanding product choice. 12-milligram on! PLUS shipments resumed in three states during the quarter, with national expansion planned for the third quarter. Additional flavors across 6-milligram, 9-milligram and 12-milligram strengths, starting with Blueberry Mint and Mango Pineapple, are planned for the fourth quarter.
Together, these developments show a smoke-free strategy built around wider distribution, a growing nicotine pouch category and a broader on! PLUS offering.
MO’s Nicotine Pouch Strategy Evolves Alongside PM and TPBPhilip Morris International Inc. (PM - Free Report) is also expanding its smoke-free portfolio through nicotine pouches, with ZYN now available in 60 markets. In the second quarter of 2026, Philip Morris reported ZYN shipments rose 1.8% to 2.9 billion pouches, while new 9mg and 11mg ZYN ULTRA variants began shipping. Philip Morris plans additional 1.5mg and 8mg dry variants in the third quarter.
Turning Point Brands, Inc. (TPB - Free Report) is also expanding its smoke-free portfolio through nicotine pouches, with Modern Oral net sales up 128% year over year to $68.4 million in the second quarter of 2026. While Modern Oral accounted for 48% of total revenues, up from 26% a year earlier, Turning Point Brands expanded retail distribution for FRE and ALP. Turning Point Brands expects chain-store count to increase 70% year over year by year-end.
Altria’s Price Performance, Valuation & EstimatesShares of Altria have fallen 0.4% in the past three months against the industry’s growth of 5.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.81X, down from the industry’s average of 15.55X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s 2026 and 2027 earnings implies year-over-year growth of 4.8% and 3.2%, respectively.
Image Source: Zacks Investment Research
Altria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Altria ve 2. čtvrtletí 2026 zvýšila čisté tržby z tabákových produktů o 0,7 % a upravený OCI o 2,4 %, i když domácí dodávky cigaret klesly meziročně o 3,2 %. Růst táhly vyšší ceny Marlboro.
Key Takeaways Altria's domestic cigarette shipments fell 3.2% in Q2, or 4.5% excluding trade inventory moves.Higher pricing lifted smokeable net revenues 0.7% and adjusted OCI 2.4% despite lower volumes.Marlboro pricing drove gains, partly offset by smokers trading down to the lower-priced Basic brand. Altria Group, Inc. (MO - Free Report) continues to rely on pricing to support its smokeable products business as cigarette volumes continue to decline. The second quarter of 2026 showed that this strategy remained effective, even as lower shipment volumes continued to weigh on the business.
The smokeable products segment reported domestic cigarette shipment volume fell 3.2% year over year in the second quarter. Excluding trade inventory movements, the decline was estimated at 4.5%, compared with an estimated 5% decline for the overall U.S. cigarette industry. Despite lower shipments, smokeable products net revenues increased 0.7%, while net revenues net of excise taxes rose 2%, driven by higher net pricing.
Adjusted operating companies income (“OCI”) increased 2.4% and adjusted OCI margin expanded 30 basis points to 64.8%. The benefits of higher pricing and refunds of taxes and duties on imported cigarettes more than offset the effects of lower shipment volumes, increased promotional investments, a greater mix of discount products and higher costs.
Pricing remained an important support for Altria's smokeable business during the quarter. Smokeable price realization was 4.5%, driven by strong net pricing for Marlboro. However, the benefit was partly offset by a greater mix of the lower-priced Basic brand as some adult smokers traded down amid discretionary income pressures.
Overall, the quarter demonstrated that pricing continued to help offset the financial impact of lower cigarette shipment volumes. Although changing consumer purchasing patterns and a growing mix of discount products remain challenges, higher pricing continued to support revenue growth and profitability in the smokeable products business.
How Altria Compares With Philip Morris and TPBPhilip Morris International Inc. (PM - Free Report) also demonstrated the strength of pricing in its combustible business in the second quarter of 2026. While helping international combustibles net revenues grow 6.4% organically despite unfavorable geographic mix, Philip Morris reported nearly 10% pricing variance in the quarter. Strong pricing, coupled with stable category share, supported profitability, highlighting how Philip Morris continues to offset mix-related pressures through disciplined pricing.
Turning Point Brands, Inc. (TPB - Free Report) continues to rely on disciplined margin management to navigate a changing tobacco landscape. In the first quarter of 2026, Turning Point Brands expanded Zig-Zag gross margin by 300 basis points through favorable product mix despite weaker sales. Turning Point Brands also offset part of its cost pressures through tariff refunds, helping support overall profitability.
Altria’s Price Performance, Valuation & EstimatesShares of Altria have gained 4.9% in the past six months compared with the industry’s growth of 3.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.78X, down from the industry’s average of 15.7X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s 2026 and 2027 earnings implies year-over-year growth of 5.2% and 3%, respectively.
Image Source: Zacks Investment Research
Altria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Altria expanded on! PLUS availability to 120,000 stores and highlighted smoke-free growth plans.MO raised 2026 adjusted EPS guidance to $5.61-$5.72 after strong first-half execution.Altria reported smokeable products adjusted OCI rose 2.4% with margin expanding to 64.8%. Altria Group, Inc. (MO - Free Report) used its second-quarter earnings call to highlight progress in smoke-free products, disciplined tobacco portfolio management and shareholder returns. Management narrowed its 2026 earnings outlook after strong first-half execution.
Executives focused on on! PLUS expansion, cigarette portfolio strategy and regulatory developments affecting nicotine categories. Analyst questions centered on consumer pressure, volume trends and the timing of second-half benefits.
MO Advances Smoke-Free PortfolioCEO Salvatore Mancuso said that Helix expanded on! PLUS availability to 120,000 stores nationwide and continued trial-generating activities. The company plans additional product extensions across nicotine strengths and flavors later in 2026.
Mancuso also said that nicotine pouches remain a key growth area, with the category representing nearly 60% of the oral tobacco category. He noted that on! retail share reached 8.6% in the second quarter.
Management also highlighted FDA actions affecting nicotine products. Mancuso said that increased regulatory clarity and enforcement against illicit products could support legal smoke-free alternatives.
Altria Balances Tobacco PortfolioAltria emphasized its total portfolio approach in smokeable products, using premium and discount brands to manage changing consumer behavior. Marlboro maintained its premium leadership while Basic gained traction among value-focused consumers.
The company reported smokeable products adjusted operating companies income increased 2.4% in the second quarter, supported by pricing and tax refund benefits. Adjusted OCI margin expanded to 64.8%.
Management said domestic cigarette volume declines moderated, with industry declines estimated at 5% after adjusting for trade inventory movements. Executives attributed the trend partly to reduced movement into illicit disposable e-vapor products.
MO Discusses Consumer PressuresDuring Q&A, a Stifel analyst asked about second-half expectations after Altria raised the lower end of guidance. Mancuso said that consumer financial pressure remains an important factor, including elevated inflation and gas prices.
Mancuso also addressed Cowboy Cut, saying the product provides another tool for engaging value-sensitive Marlboro smokers while supporting the broader revenue growth management strategy.
A Goldman Sachs analyst questioned cigarette volume trends and pricing dynamics. Management said that discount growth reflected consumer trade-down behavior, while premium remained the most profitable segment.
Altria Updates Financial OutlookAltria raised the lower end of its 2026 adjusted diluted EPS guidance range and now expects $5.61-$5.72, representing growth of 3.5-5.5% from the 2025 base.
Second-quarter adjusted EPS was $1.48, up 2.8% year over year, while revenues net of excise taxes increased 1.2% to $5.356 billion. The company’s adjusted EPS and revenues missed the Zacks Consensus Estimate of $1.5 and $5.362 billion, respectively.
CFO Heather Newman said that first-half performance reflected strong smokeable products execution and disciplined financial management. Altria returned nearly $3.9 billion to shareholders through dividends and share repurchases.
MO Highlights Capital AllocationMO continued shareholder returns during the quarter, including $1.8 billion in dividend payments and $55 million in share repurchases. The company had $665 million remaining under its current buyback authorization at quarter-end.
Management said that its balance sheet remained strong, with debt-to-EBITDA of 1.9X as of June 30. Executives reiterated their focus on maintaining shareholder value through capital returns.
Altria also discussed investment priorities, including increased capital expenditures tied to consolidating manufacturing operations. The company expects 2026 capital expenditures of $375-$450 million.
Altria Maintains Strategic FocusThe company’s leadership emphasized continued investment in smoke-free products while protecting profitability in traditional tobacco businesses. Management pointed to on! PLUS expansion and brand execution as key priorities.
Mancuso said competitive activity in nicotine pouches is increasing, but Helix is positioned with product differentiation and a broader portfolio. The company expects additional launches later in the year.
The quarter showed management balancing growth investments with near-term consumer challenges. Altria’s outlook reflects confidence in execution while recognizing pressure across nicotine categories.
MO’s Zacks SignalsMO carries Zacks Rank #2 (Buy) at present. The Zacks Rank is driven by earnings estimate revisions and is designed to help identify stocks with stronger potential performance over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of C, a Growth Score of D, a Momentum Score of B and a VGM Score of D. The Zacks Style Score uses grades from A to F to measure value, growth, momentum and combined characteristics, with higher scores indicating stronger attributes.
The Zacks Rank and Style Score can change as analysts update earnings estimates and market conditions evolve following the latest results.
Altria Group, Inc. (MO) Q2 2026 Earnings Call July 30, 2026 9:00 AM EDT
Company Participants
Mac Livingston - Vice President of Investor Relations
Salvatore Mancuso - CEO & Director
Heather Newman - Executive VP & CFO
Conference Call Participants
Matthew Smith - Stifel, Nicolaus & Company, Incorporated, Research Division
Bonnie Herzog - Goldman Sachs Group, Inc., Research Division
Pallav Mittal - Barclays Bank PLC, Research Division
Eric Serotta - Morgan Stanley, Research Division
Mirza Faham Baig - UBS Investment Bank, Research Division
Damian McNeela - Deutsche Bank AG, Research Division
Presentation
Operator
Good day, and welcome to the Altria Group 2026 Second Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Mac Livingston, Vice President of Investor Relations. Please go ahead, sir.
Mac Livingston
Vice President of Investor Relations
Thanks, Olivia. Good morning, and thank you for joining us. This morning, Sal Mancuso, Altria's CEO; and Heather Newman, our CFO, will discuss Altria's 2026 second quarter business results. Earlier today, we issued a press release providing our results. The release, presentation and quarterly metrics are all available at altria.com. During our call today, unless otherwise stated, we're comparing results to the same period in 2025.
Our remarks contain forward-looking statements, including projections of future results. Please review the forward-looking and cautionary statements section at the end of today's earnings release for various factors that could cause actual results to differ materially from projections. Future dividend payments and share repurchases remain subject to the discretion of our Board of Directors. We report our financial results in accordance with U.S. generally accepted accounting principles.
Today's call will contain various operating results on both a reported and adjusted basis. Adjusted results exclude special items that affect comparisons with reported results. Descriptions of these non-GAAP financial measures and reconciliations to the most comparable
Altria Group klesá o 9,27 % poté, co vyšší náklady tlačí kuřáky k levnějším cigaretám a snižují poptávku po Marlboro. Tržby v segmentu kouřitelných produktů vzrostly jen o 0,7 %, zatímco objem dodávek Marlboro klesl o 7,4 %.
• Altria Group stock is taking a hit today. What’s pressuring MO stock?.
Quarterly DetailsIn the Smokable Products segment, net revenues increased 0.7%. The segment reported domestic cigarette shipment volume decreased 3.2%, primarily driven by the industry’s decline rate. Shipment volumes for Marlboro fell 7.4%.
The Oral Tobacco Products unit slid 5.3% year over year. The segment reported domestic shipment volume decreased 8.5%, primarily driven by retail share losses and trade inventory movements.
Quarterly operating income fell 2.9% year over year to $3.14 billion.
As of June 30, the company had cash and equivalents worth $2.37 billion.
Consumer Pressure Hits Premium DemandHigher fuel and everyday living costs pressured consumer spending, making price a bigger factor for tobacco buyers. Altria had already warned in April that costs tied to the Middle East conflict were hurting discretionary spending and encouraging some smokers to switch to lower-priced cigarettes, Reuters reported on Thursday.
That down-trading hurt demand for Marlboro, even as Altria leaned on discount brands such as Basic to soften the impact.
Alternatives Remain a Growth FocusAltria has continued shifting toward cigarette alternatives, including On! nicotine pouches and NJOY vapes, as traditional cigarette volumes face pressure.
However, macroeconomic uncertainty also affected demand for premium cigarettes and nicotine pouches in the quarter, contributing to the earnings miss and sending Altria shares lower.
OutlookAltria Group raised its 2026 adjusted EPS guidance to $5.61-$5.72 (up from prior range of $5.56–$5.72), in line with the $5.69 analyst estimate.
MO Price Action: Altria Group shares are trading lower by 9.27% to $67.99 at publication on Thursday.
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Altria (MO - Free Report) came out with quarterly earnings of $1.48 per share, missing the Zacks Consensus Estimate of $1.5 per share. This compares to earnings of $1.44 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -1.33%. A quarter ago, it was expected that this owner of Philip Morris USA, the nation's largest cigarette maker would post earnings of $1.24 per share when it actually produced earnings of $1.32, delivering a surprise of +6.45%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Altria, which belongs to the Zacks Tobacco industry, posted revenues of $5.36 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.11%. This compares to year-ago revenues of $5.29 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Altria shares have added about 29.9% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for Altria?While Altria has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Altria was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.51 on $5.31 billion in revenues for the coming quarter and $5.70 on $20.55 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Tobacco is currently in the bottom 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Universal Corp. (UVV - Free Report) , has yet to report results for the quarter ended June 2026.
This leaf tobacco merchant is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -34.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Universal Corp.'s revenues are expected to be $587 million, down 1.1% from the year-ago quarter.
Key Takeaways MO is expected to post Q2 revenues of $5.36 billion and earnings of $1.50 per share.Pricing strength and premium brands may help offset lower cigarette shipment volumes.Nicotine pouch growth may support oral tobacco, though competition could pressure margins. Altria Group, Inc. (MO - Free Report) is likely to register growth in both top and bottom lines when it reports second-quarter 2026 earnings on July 30.
The Zacks Consensus Estimate for second-quarter revenues is pinned at $5.36 billion, indicating a 1.4% increase from the same period last year. Meanwhile, the consensus mark for earnings has remained unchanged in the past 30 days at $1.50 per share, indicating 4.2% growth from the year-ago quarter’s reported figure. Altria has a trailing four-quarter average earnings surprise of 2.9%.
Things to Consider About Altria’s Upcoming ResultsAltria’s second-quarter performance is likely to have been supported by continued pricing strength across its smokeable products business, despite an industry environment marked by declining cigarette volumes. Strong net price realization, disciplined revenue management and resilient demand for premium brands are likely to have helped offset lower shipment volumes. However, persistent macroeconomic pressures and consumer downtrading toward discount offerings might have remained a drag on overall volume and product mix.
The company’s oral tobacco business is likely to have remained a key area of support, driven by continued momentum in nicotine pouches. The nationwide rollout of on! PLUS, broader retail availability and sustained consumer interest in smoke-free alternatives are likely to have supported shipment growth during the quarter. However, heightened competition in the nicotine pouch category, along with higher promotional spending and product mix pressures, is likely to have weighed on segment margins. The Zacks Consensus Estimate indicates a decrease of 1.7% in the Oral Tobacco Products revenues.
The Smokeable Products segment is likely to have remained the primary contributor to quarterly performance. Cigarette shipment volumes are likely to have continued declining year over year, although the pace of decline might have remained more moderate amid reduced cross-category movement to illicit disposable e-vapor products. Strong pricing, stable premium brand performance and disciplined portfolio execution are likely to have supported revenues and earnings, partially offsetting the impact of volume softness and a value-seeking consumer environment. The Zacks Consensus Estimate implies an increase of 1% in the Smokeable Products revenues.
Earnings Whispers for MO StockOur proven model doesn’t conclusively predict an earnings beat for Altria this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Altria currently has a Zacks Rank #2 and an Earnings ESP of -1.34%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Archer-Daniels-Midland Company (ADM - Free Report) currently has an Earnings ESP of +11.52% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Archer-Daniels’ upcoming quarter’s EPS is pegged at $1.27, which implies a 36.6% rise year over year. The consensus estimate for ADM’s quarterly revenues is pinned at $22.38 billion, which calls for 5.7% growth from the figure reported in the prior-year quarter. ADM delivered a trailing four-quarter earnings surprise of 5.4%, on average.
Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +1.43% and a Zacks Rank of 3. The Zacks Consensus Estimate for Kimberly-Clark’s upcoming quarterly revenues is pegged at $4.23 billion. The figure implies a 1.7% increase from the prior-year quarter.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $2.00, indicating a 4.2% gain from the year-ago period figure. KMB delivered a trailing four-quarter earnings surprise of 19.1%, on average.
Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank of 3. The consensus estimate for Monster Beverage’s quarterly revenues is pinned at $2.42 billion, which indicates 14.5% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at 59 cents, which implies a 13.5% increase year over year. MNST delivered a trailing four-quarter earnings surprise of 9.6%, on average.
Altria zvýšila provozní marži u kouřitelných výrobků na 65,1 % a díky cenové síle udržuje dividendu s výnosem 5,73 %. Společnost letos vyplatila 7,0 miliardy USD na dividendách při provozním výsledku 9,899 miliardy USD.
Altria has become a magnet for income-focused capital this year, with the stock climbing 32.55% year-to-date as retirees hunt for inflation hedges while the Fed has cut its target rate to 3.75%. Altria (NYSE:MO | MO Price Prediction) sells Marlboro, Copenhagen, Skoal, on! nicotine pouches and NJOY e-vapor, and its smokeable engine just posted a 65.1% operating margin. The question is whether the dividend is actually as bulletproof as the bulls claim.
Dividend Snapshot Metric Value Annual Dividend $4.24 per share Dividend Yield 5.73% Consecutive Years of Increases 60 increases in 56 years Most Recent Increase 3.9% (August 2025) Aristocrat-Class Status Yes (commonly recognized) Payout Ratios Leave Real Room Despite Volume Drag Altria earned $5.42 in adjusted diluted EPS for 2025 and pays $4.24 annually, putting the earnings payout ratio at 78.2%. That is elevated by general standards but normal for a mature tobacco operator. Cash coverage is what matters here. The company paid $7.0 billion in dividends in 2025 against operating income of $9.899 billion, with capex of only $175 to $225 million.
Metric TTM Value Assessment Earnings Payout Ratio 78.2% Elevated but Manageable FCF Payout Ratio (est.) ~76% Healthy 2026 EPS Guidance $5.56 to $5.72 Lowers Payout Further Negative Equity Reflects Buybacks, Not Distress Signals Altria carries negative shareholders’ equity of $3.211 billion, a function of years of aggressive buybacks. EBITDA of $15.79 billion against the debt load keeps leverage manageable, and cash sits at $3.531 billion. The smokeable margin expansion to 65.1% confirms pricing power is offsetting the 5% industry volume decline.
20 Years of Increases and Counting Year Annual Dividend 2026 (run rate) $4.24 2025 $4.16 2024 $4.08 2023 $3.92 2022 $3.68 2021 $3.52 The 5-year dividend CAGR runs roughly 3.8%, in line with management’s mid-single-digit growth target through 2028.
Management’s Tone: Confident, Not Hedging CEO Billy Gifford told investors on the Q1 2026 call: “We delivered a strong start to the year, growing adjusted diluted EPS by 7.3% in the first quarter. Our highly cash-generative businesses supported significant returns to shareholders through dividends and share repurchases.” On the prior call, he noted the company “returned $8 billion to shareholders through dividends and share repurchases combined” in 2025. That tone reflects confidence.
Verdict: Safe, With Pricing Power Doing the Heavy Lifting Dividend Safety Rating: Safe. The 78% earnings payout is the only number I would flag, but 2026 guidance of $5.56 to $5.72 mechanically eases it. I would be comfortable owning Altria for income if you accept that pricing power drives the thesis. I would be cautious if Marlboro share losses accelerate past current declines or if regulators target menthol and nicotine caps more aggressively. For now, the dividend looks intact.
Want Up To $1,000? SoFi Is Giving New Active Invest Users Free StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.
From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.
