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on!® Crowns Team Grass League Champions at Inaugural on!vitational™ Golf Tournament Helix Innovations LLC, an operating company of Altria Group, Inc. (Altria) (NYSE: MO), today announced the winners of on!® nicotine pouches’ inaugural on!vitational, held October 16 and 17 at TGL’s SoFi Center in Palm Beach Gardens, Florida. The two-day golf and entertainment experience brought together eight teams of current and former professional athletes, golf personalities, entertainers and adult nicotine consumers age 25+ for a competition that combined golf, technology and entertainment.

Well-known golf influencer Paige Spiranac and Team Grass League, including former professional golfer Drew Kittleson and Grass League co-founder Jimmy Hoselton, captured the inaugural on!vitational Championship. The team defeated former PGA TOUR veteran Ricky Barnes and Team Troon in a dramatic final to claim the tournament trophy and golf’s orangest jacket. After teams including Malbon, Palm Tree Crew and Hypegolf battled throughout the competition, Grass League staged a thrilling comeback, with an on!® consumer sweepstakes winner delivering a pivotal shot on the penultimate hole to help secure the victory.

Unlike traditional golf tournaments, the on!vitational put nicotine consumers 25+ directly into the competition alongside some of the biggest personalities in golf, sports and entertainment. Consumer participants, selected at random through an on!® sweepstakes earlier this year, competed as members of the eight teams. The two-day event was emceed by popular golf influencer and TGL host Roger Steele.

Grass League co-founder Jimmy Hoselton summed up the excitement: “on!®has been with us from the beginning. We're all in on on!®, and we're all in on the on!vitational.”

A New Kind of Golf Competition

Held inside TGL’s 250,000-square-foot SoFi Center, the on!vitational took advantage of the venue’s technology, including its over four-story tall simulator screen and real-life putting and short-game areas, to deliver a golf experience unlike a traditional tournament.

The competition also featured unique in-match opportunities. Momentum Swing allowed the sweepstakes winners to chip into designated round spots on the green for significant bonus points while Celeb Shot allowed teams to choose any team member to take a shot, regardless of whose turn it was. All Axis offered a strategic element where teams could move the green 45 or 90 degrees in any direction after their opponent was on or close to the green to gain short game and putting advantages at key moments.

These elements ended up being major factors in the final. Grass League was down 6-0 on No. 6. They used their Celeb Shot to allow Kittleson to hit, and he delivered. He chipped it in from off the green to give Grass League their first points of the match. A 20-foot birdie putt on No. 7 by Hoselton pulled Team Grass League within two points, and the Momentum Swing was the deciding factor. Trailing 6-4 on No. 8, Team Grass League sweepstakes winner William K. chipped it into one of the designated spots, scoring six points, and clinching the comeback Championship victory.

"This was one of the best experiences of my life," said on!® sweepstakes and Team Grass League winner William K. in a post-match interview. "My team kept picking me up throughout the tournament, and I was able to deliver when it counted. Really thankful to on!® for putting on such a great event."

Beyond the competition, multi-platinum recording artist Flo Rida headlined Saturday's entertainment, bringing an energy-filled conclusion to two great days of golf. He performed some of his biggest hits and invited tournament winners and guests to join him onstage.

Honoring Veterans Through Golf

The on!vitational also featured a partnership with the Veteran Golfers Association (VGA), a nonprofit dedicated to enriching the lives of veterans and their family members through the camaraderie and sportsmanship of golf.

In addition to competing as one of the tournament's eight teams, the VGA participated in a special military salute recognizing U.S. Navy veteran and Medal of Honor recipient Edward C. Byers Jr., who attended the event. All proceeds from can sales at the on!vitational went towards supporting the VGA and its mission.

Relive the on!vitational

Fans 21 or older can relive the competition, winning moments, player highlights and entertainment through content available on the on!® Instagram.

About on!®Nicotine Pouches

on!®and on! PLUS®nicotine pouches are designed for adult nicotine consumers 21+ looking for a satisfying, premium nicotine pouch experience. With six varieties and three nicotine strengths, on!® nicotine pouches deliver against a wide variety of adult consumer 21+ tastes and preferences. on! PLUS® nicotine pouches are designed with a proprietary NICOSILK™ mesh technology for a comfortable feel. on! PLUS® is available in Mint, Wintergreen & Tobacco flavors at 6, 9 and 12 mg strengths. on! PLUS® will also offer the same three strength options in exciting new flavors: Blueberry Mint, Mango Pineapple and Watermelon Mint (select stores only).

Helix Innovations LLC Profile

Helix Innovations LLC (Helix), an Altria company, offers a portfolio of oral nicotine pouch products for adult nicotine consumers 21+, including on!® and on! PLUS®. In December 2025, the U.S. Food and Drug Administration authorized the marketing of certain on! PLUS®variants.

Helix is committed to responsible marketing and preventing underage access to nicotine products. As an Altria operating company, Helix follows marketing practices designed to appeal to adult nicotine consumers 21+ while taking steps to limit reach to underage audiences.

No one under the age of 21 should use nicotine products. Nicotine is addictive, and nicotine products are not risk-free. on!®products are intended for adult nicotine consumers 21+.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261023839262/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

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.

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.

Where you hold a high-yield stock matters almost as much as which one you pick, and the difference between the right account and the wrong one compounds into a gap that reaches six figures before you touch a single share.

At the 24% bracket, a $700,000 portfolio of five high-yield stocks throws off about $47,400 a year, and a taxable account sends roughly $11,400 of it to the IRS. Inside a Roth IRA, qualified distributions are “not includible in gross income” under 26 U.S.C. § 408A(d)(1), so the full stream stays with you.

Roth Versus Taxable on $700,000: An $11,400 Annual Gap
The model allocates $140,000 to each of five names whose payouts are taxed largely as ordinary income. Yields come from each company’s annualized forward payout divided by its October 20 closing price.

MPLX (NYSE:MPLX | MPLX Price Prediction): 7.37% yield on a $4.306 annualized distribution. Management has committed to 12.5% distribution growth in both 2026 and 2027, so the taxable-account drag grows every year.
Enterprise Products Partners (NYSE:EPD): 6.05% yield on $2.24 annualized. Its 1.9x distribution coverage points to a durable stream of non-qualified income.
Energy Transfer (NYSE:ET): 6.83% yield on $1.36 annualized, following its 19th consecutive quarterly increase.
VICI Properties (NYSE:VICI): 7.85%, the highest yield in the group, on $1.84 annualized. REIT dividends are non-qualified, which makes VICI the biggest per-dollar Roth winner here.
Realty Income (NYSE:O): 5.78% on $3.258 annualized, paid monthly. Its 115th consecutive quarterly increase means taxable investors face a rising ordinary-income bill.

24% Bracket
Gross Income
Tax Cost
Net Income

Roth IRA
$47,400
$0
$47,400

Taxable
$47,400
$11,400
$36,100

That works out to $11,400 a year in Roth savings, or $113,900 over 10 years with no growth assumed. The model taxes every dollar at the bracket rate. MLP distributions often carry return-of-capital treatment that postpones part of that bill, and REIT dividends may qualify for the deduction in 26 U.S.C. § 199A(e)(3), so read these figures as the upper limit on the taxable drag.

Altria (NYSE:MO) shows the other side. It yields 6.00% on a $4.44 forward dividend, but dividends from domestic corporations qualify for qualified dividend income treatment under 26 U.S.C. § 1(h)(11) and are taxed at capital gains rates. When Roth space is limited, Altria gains the least from sitting inside it.

One catch for the MLPs: under 26 U.S.C. § 512(c), a tax-exempt partner includes its share of a partnership’s unrelated business income. Large MLP positions can trigger tax owed by the IRA itself.

Higher Brackets Widen the Gap Fast
For 2025 income, the 24% bracket covers single filers from $103,351 to $197,300 and joint filers from $206,701 to $394,600. The same portfolio at each bracket:

Bracket
Taxable After-Tax Income
Roth Advantage Per Year

22%
$37,000
$10,400

24%
$36,100
$11,400

32%
$32,300
$15,200

37%
$29,900
$17,600

Moving from the 22% to the 37% bracket increases the yearly Roth benefit on the same five holdings from $10,400 to $17,600.

What Compounding Adds to the Annual Gap
The $11,400 is only the first-year figure. Reinvest that delta each year at a conservative 4%, and it grows to about $136,700 after 10 years and $339,100 after 20. Without reinvestment, 20 years of the gap totals $227,700, so compounding raises the 20-year total from $227,700 to $339,100. No price appreciation or dividend growth is assumed in these figures. They measure what the taxable account permanently gives up on income alone (if you want to turn a lump sum like this into a scheduled monthly paycheck, we laid out the mix, calendar, and withdrawal order in a free Paycheck Portfolio Method guide).

Three Steps to Take Before Your Next Filing

List every REIT and MLP in your taxable accounts and multiply its annual payout by your marginal rate. That number is your yearly tax cost from holding them there.
If you are converting to a Roth in phases, run the math on ordinary-income stocks like VICI and MPLX alongside qualified stocks like Altria to see where the tax savings concentrate.
Before moving large MLP holdings into a Roth, check prior K-1s for unrelated business income so a tax bill inside the IRA does not eat into the advantage.

The ordinary-income stocks are where Roth placement matters most, Altria matters least, and every jump in bracket makes the gap wider.

Contact [email protected] for any questions or corrections.

CWA Asset Management Group LLC grew its position in shares of Altria Group, Inc. (NYSE:MO – Free Report) by 12.7% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 247,351 shares of the company’s stock after buying an additional 27,846 shares during the period. CWA Asset Management Group LLC’s holdings in Altria Group were worth $16,657,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in MO. Cornerstone Planning Group LLC lifted its holdings in Altria Group by 5.8% during the first 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 during the last quarter. Riverbend Wealth Management LLC boosted its position in Altria Group by 1.8% during the third quarter. Riverbend Wealth Management LLC now owns 8,194 shares of the company’s stock worth $552,000 after purchasing an additional 143 shares during the period. Angeles Wealth Management LLC increased its stake in shares of Altria Group by 1.3% in the second quarter. Angeles Wealth Management LLC now owns 11,239 shares of the company’s stock worth $821,000 after purchasing an additional 146 shares in the last quarter. Bernardo Wealth Planning LLC increased its stake in shares of Altria Group by 4.6% in the second quarter. Bernardo Wealth Planning LLC now owns 3,379 shares of the company’s stock worth $243,000 after purchasing an additional 149 shares in the last quarter. Finally, Old Peak Finance LLC increased its stake in shares of Altria Group by 1.3% in the second quarter. Old Peak Finance LLC now owns 11,920 shares of the company’s stock worth $858,000 after purchasing an additional 151 shares in the last quarter. Hedge funds and other institutional investors own 57.41% of the company’s stock.

Insider Buying and Selling In other news, Director Kathryn McQuade acquired 1,500 shares of Altria Group stock in a transaction that occurred on Wednesday, September 9th. The stock was bought at an average price of $67.62 per share, with a total value of $101,430.00. Following the completion of the purchase, the director owned 114,929 shares in the company, valued at approximately $7,771,498.98. The trade was a 1.32% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 0.10% of the company’s stock.

Altria Group Stock Down 1.3% Shares of NYSE MO opened at $74.10 on Tuesday. Altria Group, Inc. has a 52 week low of $54.70 and a 52 week high of $77.06. The business has a 50-day simple moving average of $68.81 and a two-hundred day simple moving average of $69.70. The company has a market cap of $123.73 billion, a P/E ratio of 13.53, a P/E/G ratio of 2.67 and a beta of 0.42. Altria Group (NYSE:MO – Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $1.48 earnings per share 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 company had revenue of $5.36 billion for the quarter, compared to analysts’ expectations of $5.35 billion. During the same period in the previous year, the firm earned $1.44 EPS. The firm’s quarterly 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. Equities research analysts anticipate that Altria Group, Inc. will post 5.67 EPS for the current year.

Altria Group Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Tuesday, September 15th were paid a dividend of $1.11 per share. This is an increase from Altria Group’s previous quarterly dividend of $1.06. This represents a $4.44 annualized dividend and a yield of 6.0%. The ex-dividend date of this dividend was Tuesday, September 15th. Altria Group’s dividend payout ratio is presently 93.67%.

Analyst Ratings Changes Several research firms have recently issued reports on MO. Barclays lowered their price target 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. UBS Group raised their price objective on shares of Altria Group from $76.00 to $79.00 and gave the stock a “buy” rating in a report on Tuesday, July 7th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Altria Group in a report on Monday, October 12th. Freedom Broker upgraded shares of Altria Group to a “hold” rating in a research note on Wednesday, September 16th. Finally, BTIG Research started coverage on shares of Altria Group in a report on Tuesday, July 21st. They set 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. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $70.11.

Get Our Latest Analysis on Altria Group

About Altria Group (Free Report)

Altria Group, Inc is a U.S.-based consumer products company focused primarily on tobacco, nicotine and related products. Through its operating companies, Altria sells cigarettes, cigars, pipe tobacco, oral tobacco and nicotine products, and electronic vapor products.

Altria’s principal cigarette business is Philip Morris USA, whose portfolio includes Marlboro, Parliament and Virginia Slims. Its other major brands include Copenhagen and Skoal moist smokeless tobacco, Black & Mild cigars, on! nicotine pouches and NJOY electronic cigarettes.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MO, STWD, O, AGNC 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.

Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.

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Assenagon Asset Management S.A. lessened its holdings in shares of Altria Group, Inc. (NYSE:MO – Free Report) by 51.5% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,750,794 shares of the company’s stock after selling 1,855,767 shares during the quarter. Assenagon Asset Management S.A. owned about 0.10% of Altria Group worth $117,898,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. BlackRock Inc. lifted its stake in shares of Altria Group by 1.1% during the 2nd quarter. BlackRock Inc. now owns 126,073,166 shares of the company’s stock valued at $9,070,964,000 after buying an additional 1,325,175 shares in the last quarter. GQG Partners LLC purchased a new position in Altria Group in the 2nd quarter valued at approximately $1,806,782,000. Bank of America Corp DE bought a new stake in Altria Group during the 2nd quarter valued at $1,104,566,000. Bank of New York Mellon Corp raised its holdings in Altria Group by 1.0% during the 1st quarter. Bank of New York Mellon Corp now owns 12,929,142 shares of the company’s stock valued at $853,194,000 after acquiring an additional 133,676 shares during the period. Finally, Legal & General Group Plc bought a new stake in Altria Group during the 2nd quarter valued at $631,606,000. Institutional investors own 57.41% of the company’s stock.

Insiders Place Their Bets In other news, Director Kathryn McQuade bought 1,500 shares of the company’s stock in a transaction that occurred on Wednesday, September 9th. The stock was bought at an average price of $67.62 per share, for a total transaction of $101,430.00. Following the transaction, the director directly owned 114,929 shares of the company’s stock, valued at $7,771,498.98. This represents a 1.32% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 0.10% of the stock is owned by insiders.

Altria Group Price Performance Shares of NYSE:MO opened at $75.13 on Friday. The company’s fifty day moving average price is $68.63 and its 200-day moving average price is $69.62. The firm has a market capitalization of $125.44 billion, a price-to-earnings ratio of 15.85, a PEG ratio of 2.63 and a beta of 0.42. Altria Group, Inc. has a one year low of $54.70 and a one year high of $77.06. Altria Group (NYSE:MO – Get Free Report) last announced 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). Altria Group had a negative return on equity of 315.29% and a net margin of 33.99%. The company had revenue of $5.36 billion during the quarter, compared to analysts’ expectations of $5.35 billion. During the same quarter last year, the firm posted $1.44 earnings per share. The firm’s revenue was up 1.2% on a year-over-year basis. Altria Group has set its FY 2026 guidance at 5.610-5.720 EPS. As a group, equities research analysts expect that Altria Group, Inc. will post 5.67 EPS for the current year.

Altria Group Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Tuesday, September 15th were issued a dividend of $1.11 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $4.44 dividend on an annualized basis and a dividend yield of 5.9%. This is a positive change from Altria Group’s previous quarterly dividend of $1.06. Altria Group’s payout ratio is 93.67%.

Trending Headlines about Altria Group Here are the key news stories impacting Altria Group this week:

Positive Sentiment: UBS maintained a $79 price target for Altria, implying additional potential upside from recent levels and signaling continued confidence in the tobacco company’s outlook. UBS reiterates USD 79.00 target for Altria Group stock Positive Sentiment: Several investor-focused reports highlighted Altria’s appeal as an income stock. Its cigarette and nicotine-pouch businesses generate cash to support the dividend, which contributed meaningfully to shareholder returns over the past year. Other coverage described MO as potentially undervalued based on cash flow and attractive for retirement-income portfolios, despite the stock’s longer-term lag versus the S&P 500. Do Altria’s Dividends Make Up For A Lagging Stock? Positive Sentiment: Altria was included among high-yield consumer-staples and dividend stocks viewed as capable of generating reliable income, helping reinforce demand from yield-oriented investors. Generate $50,000 in Passive Income With the 5 Highest Yielding S&P 500 Stocks Neutral Sentiment: Bernstein retained a Hold rating, indicating neither a clear bullish nor bearish change in its view. Bernstein Keeps Their Hold Rating on Altria Neutral Sentiment: Altria will host a webcast covering its 2026 third-quarter and nine-month results. The event could become the next significant catalyst, particularly for updates on cigarette volumes, smoke-free products, earnings guidance and dividend capacity. Altria to Host Webcast of 2026 Third-Quarter and Nine-Months Results Negative Sentiment: Exchange-traded funds were reported as net sellers of MO, creating near-term technical pressure. Separately, MarketWatch noted that Altria’s gain lagged those of competitors, limiting its relative strength. ETFs Are Net Sellers of Altria Wall Street Analyst Weigh In Several equities research analysts have issued reports on MO shares. Wall Street Zen downgraded Altria Group from a “buy” rating to a “hold” rating in a research report on Sunday, June 21st. Weiss Ratings reissued a “buy (b)” rating on shares of Altria Group in a report on Monday. UBS Group raised their target price on Altria Group from $76.00 to $79.00 and gave the stock a “buy” rating in a research note on Tuesday, July 7th. Freedom Broker upgraded Altria Group to a “hold” rating in a research report on Wednesday, September 16th. Finally, Barclays decreased their price target on Altria Group from $64.00 to $58.00 and set an “underweight” rating on the stock in a research report on Tuesday, August 11th. Five analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $70.11.

Check Out Our Latest Stock Report on MO

Altria Group Company Profile (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.

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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.

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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.

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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.

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'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.

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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.

Altria (MO - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this owner of Philip Morris USA, the nation's largest cigarette maker have returned -1.2% over the past month versus the Zacks S&P 500 composite's -0.4% change. The Zacks Tobacco industry, to which Altria belongs, has remained unchanged over this period. Now the key question is: Where could the stock be headed in the near term?

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.

Earnings Estimate RevisionsRather 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.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-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.

The consensus earnings estimate of $5.67 for the current fiscal year indicates a year-over-year change of +4.6%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $5.84 indicates a change of +3% from what Altria is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Altria is rated Zacks Rank #4 (Sell).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile 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.

For Altria, the consensus sales estimate for the current quarter of $5.33 billion indicates a year-over-year change of +1.5%. For the current and next fiscal years, $20.63 billion and $20.74 billion estimates indicate +2.5% and +0.5% changes, 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.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

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 #4 does suggest that it may underperform the broader market in the near term.

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.

Philip Morris and Altria both just raised their dividends, but the gap between them runs far deeper than yield percentages and payout sizes. Which tobacco giant actually deserves a spot in a retirement portfolio built to last a decade?

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Philip Morris (NYSE:PM | PM Price Prediction) or Altria (NYSE:MO): which tobacco dividend belongs in a retirement portfolio right now? Both raised their payouts within the past month, and the size of those raises tells the story. Philip Morris lifted its quarterly dividend from $1.47 to $1.60 on September 18. Altria moved from $1.06 to $1.11 on August 27. One company funds its check from a growing global smoke-free business. The other funds it from a shrinking U.S. cigarette market.

Growth Trajectory: Philip Morris Has the Longer Runway Philip Morris raised its 2026 adjusted diluted EPS guidance to $8.26 to $8.41, or 9.5% to 11.5% growth, and targets 9% to 11% annual adjusted EPS growth ex-currency through 2028. Second-quarter revenue hit $11.19 billion, up 10.4%. Smoke-free products now generate 41.5% of net revenues, and international smoke-free gross margin expanded 190 basis points to 70%. Every IQOS or ZYN sale carries higher economics than the cigarette it replaces, which is why this mix shift matters. The FDA also granted modified-risk authorization to 20 ZYN variants in June 2026.

Altria raised its 2026 guidance to $5.61 to $5.72, just 3.5% to 5.5% growth. Industry domestic cigarette volumes fell an estimated 5% in the second quarter, while Marlboro’s retail share slid 1.5 share points as discount share grew 2.6 share points. Its e-vapor push has produced $2.2 billion in cumulative impairments, with no re-entry date announced. Winner: Philip Morris.

Current Income: Altria Pays More Today Altria yields 6.15% versus 3.08% for Philip Morris. Altria’s forward annualized dividend is $4.44 on a $68.88 share price, while Philip Morris pays $6.40 on a $191.50 stock. Altria has committed to mid-single-digit annual dividend growth through 2028, and management called the payout its “primary vehicle” for shareholder returns. The catch: after the dividend, Altria has typically had only about $1 billion in excess cash. For a retired person who needs cash flow this year, though, the math favors Altria. Winner: Altria.

Valuation and Risk: Philip Morris Offers More Growth per Dollar Altria trades at 12x forward earnings against 21x for Philip Morris. That discount reflects decline. On a growth-adjusted basis, Philip Morris carries the lower PEG ratio at 2.292 versus 2.642, and a lower beta of 0.395 versus 0.494. Analysts lean the same way: Philip Morris has 3 Strong Buy and 9 Buy ratings, while Altria has 4 Buy, 8 Hold, 1 Sell and 1 Strong Sell. Over ten years, Philip Morris shares returned 214.34% against 118% for Altria.

Philip Morris does carry greater leverage: net debt of $43.1 billion and net debt to adjusted EBITDA of 2.35x, versus Altria’s 1.9 times. Management targets roughly 2.0x by year-end 2026, backed by expected operating cash flow of about $13.5 billion. Winner: Philip Morris.

Verdict: Philip Morris Owns the Dividend Growth Race Philip Morris looks like the stronger option for any retirement investor with a horizon of ten years or more. Its quarterly payout has rose from $1.02 in 2016 to $1.60 today, and the engine behind it is accelerating. With 93% of first-half revenue earned outside the U.S. and smoke-free products gaining share of sales every quarter, its dividend rests on a business that is expanding. Altria’s payout rests on a U.S. cigarette base that declines every year.

Altria fits one profile: the retired person already drawing income who needs the highest yield today and accepts low-single-digit growth. Everyone else may prefer Philip Morris. Altria is one of the market’s true Dividend Kings, and a free report you can grab here ranks ten of them by current valuation. Keep an eye on Philip Morris’s deleveraging progress, the U.S. ZYN rebound and FDA action on IQOS Iluma. For Altria, track discount-segment share and its e-vapor re-entry.

Contact [email protected] for any questions or corrections.

An updated edition of the July 31, 2026, article.

Sin stocks occupy a distinctive corner of the equity market, representing companies tied to products or activities that some investors consider ethically or socially controversial. These businesses often operate in areas such as alcohol, tobacco, gambling and defense. Because demand for many of their products can remain resilient across economic cycles, sin stocks are often viewed differently from conventional investments, with returns shaped by regulation, consumer behavior, cash generation and investor sentiment.

What Are Sin Stocks?Sin stocks are shares of companies whose primary businesses are associated with products or services that may raise ethical, social or health-related concerns. Tobacco, alcoholic beverages, gambling, firearms and certain defense-related businesses are commonly included in this category. Depending on the definition used, companies involved in areas such as cannabis or adult entertainment may also be considered sin stocks.

There is no separate “sin stock market.” These companies trade on regular stock exchanges alongside companies from other industries. The term groups them according to the nature of their businesses. Their share prices therefore move according to the same basic forces affecting other stocks, including earnings, cash flows, interest rates, valuation, competitive conditions and investor expectations. However, because many of their products enjoy steady demand regardless of economic cycles, sin stocks are often considered relatively defensive investments.

The economics of many sin-stock businesses can be distinctive. Established brands, recurring consumption and high barriers to entry can support relatively steady revenues. At the same time, these companies often face higher taxes, advertising restrictions, regulatory scrutiny, litigation risks and changing social attitudes.

Why Invest in Sin Stocks?One reason investors consider sin stocks is the potential resilience of demand. Consumption of products such as tobacco, alcohol and gaming services may not move as sharply with economic conditions as spending on many discretionary products. This can provide some stability when broader economic growth slows.

Many established sin-stock companies also generate a significant cash flow. Mature businesses often have relatively limited requirements for rapid expansion, allowing more cash to be directed toward dividends, share repurchases or debt reduction. This can make income generation important part of the investment case.

Valuation can also play a role. Some institutional investors and environmental, social and governance (ESG)-focused funds exclude controversial industries from their portfolios. Reduced investor participation can sometimes leave sin stocks trading at lower valuations than businesses with comparable financial characteristics. That does not automatically make them undervalued, however, because lower valuations may also reflect genuine regulatory, legal or long-term demand risks.

How Is Sin Stock Investing Different?Sin-stock investing differs mainly in the additional factors investors must consider alongside conventional financial analysis. Revenue growth, margins, balance-sheet strength, free cash flow and valuation remain important, but regulatory and social risks can have an unusually large influence on these businesses.

Government policies can affect product pricing, taxation, advertising, distribution and operating costs. Tobacco companies, for example, may face excise-tax increases and restrictions on product marketing, while gambling companies can be heavily dependent on licensing rules and local regulations. Legal liabilities can also create substantial costs.

Investor perception is another important difference. ESG mandates may prevent certain funds from owning sin stocks regardless of their financial performance. This can affect demand for the shares and influence valuation multiples.

As a result, investing in sin stocks is not simply about buying companies with controversial businesses. It involves assessing whether durable demand, cash generation, competitive advantages and shareholder returns adequately compensate for regulatory, legal, reputational and structural risks. Like any investment strategy, the focus ultimately remains on the relationship between business fundamentals, valuation and risks.

Trends in Sin Stock SectorsSin stock sectors are evolving as changing consumer habits, regulation and technology reshape traditional business models. Tobacco companies like Altria Group, Inc. (MO - Free Report) are increasingly shifting toward smoke-free products, including heated tobacco and nicotine alternatives, as cigarette volumes decline in many developed markets.

Alcohol companies, including Molson Coors Beverage Company (TAP - Free Report) , are balancing premium brands with growing demand for low- and no-alcohol beverages. Gambling is benefiting from the expansion of online betting, mobile platforms and legalized sports wagering in more markets.

Defense companies are seeing sustained demand amid elevated global security concerns and increased military spending. Cannabis businesses continue to face uneven legalization, regulatory complexity and profitability challenges.

Across these sectors, companies are focusing on product innovation, digital engagement, cost efficiency and portfolio diversification. However, regulatory changes, taxation, litigation risks and shifting social preferences remain important factors shaping long-term performance.

If you are looking to capitalize on this trend, our Sin Stocks Screen makes it easy to identify high-potential stocks such as Diageo Plc (DEO - Free Report) , Philip Morris International Inc. (PM - Free Report) and Churchill Downs Incorporated (CHDN - Free Report) .

Explore 40 cutting-edge investment themes with Zacks Thematic Investing Screens and uncover your next big opportunity.

Diageo is supported by a powerful global brand portfolio, broad geographic reach and continued investment in innovation. Its leading brands, including Johnnie Walker, Guinness, Don Julio and Smirnoff, provide a strong platform for premiumization, pricing and distribution expansion. The company is targeting evolving consumer preferences through ready-to-drink products, low/no-alcohol offerings and more accessible formats. Geographic diversification remains an important strength, with growth in Europe, Latin America, Africa and India helping offset weakness in North America and China.

Diageo is also pursuing a leaner operating model through restructuring, supply-chain improvements and tighter overhead management. In the medium term, the Zacks Rank #2 (Buy) company’s sales growth is expected to improve as North America stabilizes, while cost savings and better mix should support operating profit growth, cash generation and greater financial flexibility. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Philip Morris is strengthening its long-term growth profile through a continued shift toward smoke-free products, supported by IQOS, ZYN and VEEV. Smoke-free products now contribute a substantial portion to revenues, while the company aims to become majority smoke-free by 2030. Its strategy centers on expanding reduced-risk products, entering additional markets, leveraging Swedish Match and the KT&G partnership, and using productivity savings to fund innovation and commercial investments.

Philip Morris maintains a leading position in heat-not-burn through IQOS, while ZYN and VEEV are broadening its presence across nicotine categories and geographies. Strong pricing, favorable product mix and scale benefits should support the Zacks Rank #3 (Hold) company’s revenues, margins and earnings, although declining cigarette volumes, regulatory pressure and U.S. execution risks remain key challenges.

Churchill Downs is building on its leadership in horse racing and gaming through continued investment in premium racing experiences, historical racing machines, regional casinos and wagering services. The Kentucky Derby remains a powerful flagship asset, supported by record wagering, viewership and sponsorship momentum, while the company’s broader racing and gaming operations provide diversified earnings streams. Churchill Downs is expanding its venue base through projects such as Victory Run at Churchill Downs Racetrack and the Rockingham Grand Casino in New Hampshire, supporting future capacity and revenue growth.

Churchill Downs’ strategy centers on developing and acquiring racing and gaming properties, expanding online wagering capabilities, and leveraging established regional positions. Continued growth across Live and Historical Racing, Wagering Services and Gaming, combined with disciplined development spending, should support the Zacks Rank #3 company’s long-term earnings expansion and cash generation.

People often talk about a company's dividend in terms of the dollar amount or yield. That's important, along with checking its cash flow and earnings to see if the company can afford the payments.

But it's also interesting to see how much cash your stock investment will generate over time. Altria Group (MO -1.42%) raised its dividend last month, marking the 61st increase in 57 years. That makes the company a Dividend King, a group of companies that have raised payouts for at least 50 straight years.

By making a few assumptions, let's see how much income investors could receive by making a small $150 monthly investment in Altria Group over the next decade.

Image source: Getty Images.

The company hiked its quarterly dividend by 4.7% to $1.11 per share, in line with its targeted mid-single-digit percentage increase through 2028. Using that assumption seems like a good place to start.

Assuming a flat share price, reinvesting dividends into additional shares, and a 4% annual increase over 10 years, investors would receive $8,675 in dividends. What if Altria Group's board of directors raises dividends by 6% a year? You'd have $10,160.

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Of course, it's also useful to look at more conservative scenarios. If the company increased payouts by a modest 2% annually, you'd have received $7,430.

What if you don't reinvest the dividends? Your monthly investment, assuming a 6% annual increase, would provide $7,883 in total dividends. And at the low end, a 2% increase in dividends would give you $6,072.

Investors should note that these calculations don't take taxes into account. Your tax rate depends on your situation, but if you own Altria Group's shares in a taxable brokerage account, you'll likely have a lower after-tax amount.

Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

MO trades at a steep discount with steady gains, but its momentum hinges on pricing power, brand strength and managing persistent volume declines.

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.

Shares of this owner of Philip Morris USA, the nation's largest cigarette maker have returned +7.1% over the past month versus the Zacks S&P 500 composite's -2.4% change. The Zacks Tobacco industry, to which Altria belongs, has gained 2.1% over this period. Now the key question is: Where could the stock be headed in the near term?

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.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-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 $5.84 indicates a change of +3% from what Altria is expected to report a year ago. Over the past month, the estimate has remained unchanged.

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 #3 (Hold) for Altria.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Altria, the consensus sales estimate of $5.33 billion for the current quarter points to a year-over-year change of +1.5%. The $20.61 billion and $20.74 billion estimates for the current and next fiscal years indicate changes of +2.4% and +0.6%, 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.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

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.

Bottom LineThe 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 #3 does suggest that it may perform in line with the broader market in the near term.

Bank of America Corp DE acquired a new position in shares of Altria Group, Inc. (NYSE:MO – Free Report) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm acquired 15,351,862 shares of the company’s stock, valued at approximately $1,104,566,000. Bank of America Corp DE owned approximately 0.92% of Altria Group as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Illinois Municipal Retirement Fund boosted its holdings in shares of Altria Group by 7.1% in the 4th quarter. Illinois Municipal Retirement Fund now owns 668,243 shares of the company’s stock valued at $38,531,000 after buying an additional 44,267 shares during the last quarter. Procyon Advisors LLC raised its position in Altria Group by 59.3% during the first quarter. Procyon Advisors LLC now owns 38,926 shares of the company’s stock worth $2,569,000 after acquiring an additional 14,490 shares in the last quarter. North Dakota State Investment Board bought a new stake in Altria Group during the fourth quarter worth $3,336,000. Nomura Asset Management Co. Ltd. lifted its stake in Altria Group by 2.4% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 665,297 shares of the company’s stock valued at $38,361,000 after acquiring an additional 15,728 shares during the last quarter. Finally, Stephens Inc. AR lifted its stake in Altria Group by 8.6% in the first quarter. Stephens Inc. AR now owns 266,504 shares of the company’s stock valued at $17,696,000 after acquiring an additional 21,124 shares during the last quarter. Institutional investors and hedge funds own 57.41% of the company’s stock.

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 shares were purchased at an average cost of $67.62 per share, with a total value of $101,430.00. Following the acquisition, the director directly owned 114,929 shares in the company, valued at $7,771,498.98. This represents a 1.32% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. 0.10% of the stock is owned by company insiders.

Altria Group Stock Performance Shares of MO opened at $70.69 on Tuesday. The firm has a market cap of $118.03 billion, a P/E ratio of 14.91, a price-to-earnings-growth ratio of 2.45 and a beta of 0.45. Altria Group, Inc. has a 52 week low of $54.70 and a 52 week high of $77.06. The firm’s 50-day simple moving average is $69.38 and its 200 day simple moving average is $69.12. Altria Group (NYSE:MO – Get Free Report) last issued its quarterly earnings data 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). Altria Group had a negative return on equity of 315.29% and a net margin of 33.99%.The company had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.35 billion. During the same quarter last year, the business earned $1.44 earnings per share. The company’s revenue was up 1.2% on a year-over-year basis. Altria Group has set its FY 2026 guidance at 5.610-5.720 EPS. As a group, equities analysts forecast that Altria Group, Inc. will post 5.67 earnings per share for the current year.

Altria Group Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Tuesday, September 15th will be paid a $1.11 dividend. 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 yield of 6.3%. Altria Group’s dividend payout ratio is presently 89.45%.

Analysts Set New Price Targets A number of research analysts have recently commented on MO shares. BTIG Research began coverage on shares of Altria Group in a research note on Tuesday, July 21st. They set a “neutral” rating on the stock. Barclays dropped their target price on shares of Altria Group from $64.00 to $58.00 and set an “underweight” rating on the stock in a report on Tuesday, August 11th. Wall Street Zen downgraded shares of Altria Group from a “buy” rating to a “hold” rating in a research note on Sunday, June 21st. Weiss Ratings reiterated a “buy (b)” rating on shares of Altria Group in a report on Tuesday, July 14th. Finally, UBS Group boosted their price target on Altria Group from $76.00 to $79.00 and gave the stock a “buy” rating in a research report on Tuesday, July 7th. Five analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Altria Group currently has an average rating of “Hold” and a consensus price target of $70.11.

Get Our Latest Report on Altria Group

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.

Further Reading Five stocks we like better than Altria Group Analysts Are Punting Their Calls Into the Next Quarter After Adobe’s Mixed Earnings Institutional Money Is Pouring Into These 2 Altcoin ETFs The End of Big Tech Buybacks? Only One Hyperscaler Is Still Repurchasing Shares 3 Dividend Kings to Buy While They’re Still Beaten Down 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).

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The Dividend Harvesting Portfolio, now valued at $41,547.67, has delivered a 43.76% ROI and $3,306.39 in forward annualized dividend income. I continue to reinvest dividends and selectively add to high-yield positions like GPIQ (10.15% yield) and PDI (17.93% yield) amid market volatility. Portfolio construction emphasizes diversification across equities, ETFs, REITs, CEFs, and BDCs, with a focus on compounding and sector rebalancing over time.

Investing in dividend stocks is a great way for investors to establish a passive stream of income that is often more reliable than investing solely for appreciation.

However, there is more to dividend investing than meets the eye. Companies may be forced to cut their dividends if their operations start to slip, and high dividend yields can turn into a trap.

Altria Group (MO +0.28%) has long been viewed as a strong dividend stock, and the company recently raised its quarterly dividend by nearly 5%. Is the Dividend King, a company that has raised its dividend for 50 consecutive years, a buy?

Image source: Getty Images.

What does Altria do, and how is the business performing? Before examining Altria's dividend, investors should understand what the company does, as the business itself generates the free cash flow and earnings that ultimately drive the dividend.

Investors unfamiliar with Altria will likely be more familiar with some of the brands the company owns. Altria makes tobacco products such as cigarettes, as well as smoke-free products like nicotine patches. One of its most renowned brands is Philip Morris USA, the maker of Marlboro cigarettes.

While there are still plenty of people who smoke cigarettes, health concerns have naturally led people to look elsewhere for their nicotine, particularly to smokeless products such as nicotine pouches and e-cigarettes. Altria owns brands such as Copenhagen, Skoal, and on! Plus.

In the first half of 2026, Altria reported net revenue of over $11.5 billion, up 1.6% from the same period in 2025. Adjusted diluted earnings per share grew nearly 5%.

In the first half of the year, smokeable product shipment volume declined by 2.7% compared with the same period in 2025. Oral tobacco product shipment volume fell 6%.

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On Altria's second-quarter earnings call, CFO Heather Newman said, "Economic pressure on adult smokers continued to impact cigarette industry dynamics," which in turn led people to turn to cheaper brands for their smoking habits.

Meanwhile, oral tobacco products struggled due to tough comparables in 2025, as consumers shifted away from moist tobaccoless products toward nicotine pouches. On! volume rose 5.1% in the first half of the year, compared to the same period in 2025.

Altria's strong dividend On Aug. 27, Altria increased its quarterly dividend by 4.7% to $1.11 per share, for an annualized dividend of $4.44 per share. This gives Altria an incredibly strong dividend yield of over 6.5%.

What's even more impressive is that Altria is a Dividend King, meaning it has paid and raised its annual dividend for at least 50 consecutive years. In fact, Altria has done this for 57 years, an accomplishment very few companies can match.

As mentioned, the key to evaluating dividend companies is ensuring they generate sufficient earnings and free cash flow to continue paying the dividend and raise it in the future. With the new dividend, Altria would pay out $2.22 in dividends over six months, which is equivalent to roughly 79% of the company's adjusted diluted earnings through the first half of 2026.

Meanwhile, Altria generated nearly $2.9 billion of free cash flow through the first half of 2026 (operating cash flow minus capital expenditures), which is actually less than the nearly $3.6 billion in dividends the company paid out, and that's before the recent increase.

Cash and equivalents have also fallen from nearly $4.5 billion at the end of 2025 to nearly $2.4 billion at the end of June, although it's not uncommon for the company to burn more cash in the first half of the year and then rebuild it in the second half.

Ultimately, being a Dividend King makes the dividend a critical part of Altria's investment thesis. Management knows this and will try to avoid ending this streak at all costs.

That said, the financials are a bit tighter in this case, so while I believe you can invest in this dividend stock, you'll also need to monitor the quarterly financial results to ensure there is no deterioration in the balance sheet.

There are few things income investors love more than a high-yield dividend.

What if you could combine this with a stock that has outpaced the broader market, at times obliterating a top equity index? And the icing on the cake, this grizzled veteran of its business is a Dividend King, one of the very few stocks that has pumped out dividend raises at least once annually for a minimum of 50 years in a row. Read on to discover which equity I have in mind.

Image source: Getty Images.

High margins and high yields Before I unwrap it, I have to caution that this is a "sin stock," underpinning a business that some find distasteful or even offensive. With that, I'll reveal the company is Altria (MO +1.11%), the cigarette maker best known for its Marlboro brand.

Smoking is, of course, very much out of fashion and restricted in Altria's home (and sole direct) market, the U.S. Because of this, Altria implemented the Moving Beyond Smoking strategy years ago. As the name suggests, this is an attempt to shift its business away from traditional cigarettes and into next-generation consumption options like e-cigarettes and vapes.

For a company that grew to prominence and vast wealth selling those traditional wares, the change hasn't been easy. In its most recently reported quarter, the company's smokable products accounted for a sky-high 88% of its $6.1 billion total net revenue.

Meanwhile, oral tobacco goods accounted for almost 12%, while the "all other" category, into which those next-generation products are lumped, tallied $6 million -- under one-tenth of 1%.

However, Altria probably isn't in a rush to reshape its business model. After all, despite the many negatives about smoking, cigarette making is still a large, hugely profitable enterprise.

Altria doesn't manage to move the needle much on total net revenue -- it basically flat-lined in the second quarter, while profitability dipped by over 3% year over year -- but its net margins remain enviable. The company's nearly $2.3 billion in headline net profit translated to a margin of almost 38%. Most businesses would be satisfied with 10%.

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Bulging coffers Smokables are, as ever, inexpensive to make and command premium prices for customers (even in states where the excise tax is relatively modest). They also require little or no innovation; the Marlboros your friends sneakily consume are basically the same ones grandpa kept in his shirt pocket.

This makes Altria quite the free cash flow (FCF)-generating machine. Its FCF topped $9 billion in 2025, more than enough to fund both that year's dividend payments (of just under $7 billion) and an active stock repurchase program that amounted to $1 billion.

Very few things are sure in this world, but Altria's dividend raises come close. The latest one was a nearly 5% bump to a quarterly payout of $1.11 per share. That yields almost 6.5% at a time when the average yield of all S&P 500 stocks is barely above 1%.

Altria isn't a stock for every investor. Yet for folks who don't mind the heavy aspects of the business and want to earn a high-yield dividend that's steadily rising, this one's a solid choice.

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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.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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