Latest news with #Altria
Yahoo
3 days ago
- Business
- Yahoo
Dividend Powerhouse Altria Group (MO) Lures Value Investors With 7% Yield
If you're seeking a dependable dividend stock with a generous yield, Altria Group (MO)—the U.S. parent company of Marlboro—is hard to ignore. Offering a nearly 7% dividend yield and boasting over 50 years of uninterrupted dividend growth, Altria stands out as a true Dividend King. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter I'm bullish on the stock thanks to its strong track record of shareholder returns, not just through consistent dividend hikes but also through substantial and regular share buybacks. To top it off, the stock currently trades at an attractive valuation. Let's take a deeper dive into why Altria may deserve a spot in your income portfolio. Altria's most compelling feature is its impressive 6.76% dividend yield—a figure that not only far exceeds the S&P 500's average yield of 1.3%, but also comfortably surpasses the 4.5% yield on the 10-year Treasury. That positions Altria as one of the few S&P 500 stocks offering such a significant income advantage. Beyond the headline yield, Altria offers remarkable consistency. As a Dividend King, the company has increased its dividend for 56 consecutive years, a streak that shows no sign of ending. Management understands that the company's shareholder base is primarily income-focused, and as such, continued dividend growth remains a central priority. While Altria's dividend payout ratio sits slightly above 75%—a level that might raise concerns for some—this is largely by design. Given the mature nature of its core tobacco business, the company has minimal reinvestment needs, allowing it to allocate a substantial portion of earnings toward shareholder returns. In addition to dividends, Altria has aggressively pursued share buybacks. Between 2020 and 2024, it repurchased $7.9 billion in stock, including a massive $3.4 billion in 2024 alone. In Q1 2025, Altria bought back another $326 million, with $674 million remaining under its current repurchase authorization, which it aims to complete by year-end. These buybacks not only reduce the share count—boosting earnings per share and concentrating shareholder value—but also signal management's confidence in the company's valuation. When a company returns capital this consistently, it's a clear testament to its commitment to shareholder value. Between dividends and buybacks, Altria returned nearly $40 billion to shareholders from 2020 through 2024—an impressive show of income strength and capital discipline. In addition to its generous shareholder returns, Altria also stands out for its attractive valuation. The stock trades at just 11x projected 2025 earnings—a steep discount compared to the S&P 500's forward P/E of 21.1. While it's reasonable for a mature tobacco company to trade at a lower multiple than the broader market, Altria's valuation still appears notably inexpensive by any standard. Yes, cigarette consumption continues to decline, and the prevailing narrative is that companies like Altria are in long-term structural decline. However, that view may be overly simplistic. While Altria isn't a growth stock, it's also not a 'melting ice cube.' For fiscal 2025, the company is guiding for earnings per share growth of 2% to 5%, a modest but steady increase, exactly the kind of reliable performance investors expect from a high-yield, income-focused name. Altria also has potential growth catalysts within its product portfolio, particularly with its on! nicotine pouches. In the most recent quarter, shipment volume for on! rose 18% year-over-year, reaching 39 million cans. Additionally, the product's market share within the U.S. oral tobacco category grew to 8.8% in Q1 FY2025, up from 7.0% a year earlier—an encouraging sign of traction in the smokeless segment. It's also worth noting that Altria trades at a significant discount to its closest peer, Philip Morris International (PM), which commands a forward P/E of nearly 24, more than double Altria's. Much of Philip Morris' premium valuation is tied to the explosive growth of its Zyn nicotine pouches, which saw a 53% year-over-year increase in shipments in Q1 2025. According to Nielsen data, Zyn now holds over 60% of the U.S. oral nicotine market. While on! isn't nearly as dominant as Zyn, the valuation gap between Altria and Philip Morris leaves plenty of room for upside if Altria can continue expanding its presence in the smokeless category. It may not warrant the same multiple, but continued progress could help narrow the disparity over time. MO earns a Hold consensus rating based on three Buys, three Holds, and two Sell ratings assigned in the past three months. The average analyst MO stock price target of $56.86 implies 4.4% downside potential from current levels. Altria remains one of the most dependable dividend stocks in the market, boasting 56 consecutive years of dividend increases—and showing no signs of slowing down. I'm bullish on this $100 billion company due to its exceptional track record of shareholder returns, nearly 7% dividend yield, consistent share repurchases, and deeply discounted valuation. While the stock trades at a low multiple, reflecting its status as a mature business, Altria is far from a declining asset. Management expects earnings per share to grow by 2–5% in 2025, which is steady performance for a company in this space. Meanwhile, growth products like on! nicotine pouches offer additional upside potential and a pathway to long-term relevance in a shifting nicotine landscape. 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Yahoo
3 days ago
- Business
- Yahoo
Better High-Yield Dividend Stock: Altria or British American Tobacco?
Altria and British American Tobacco have nearly identical dividend yields, growth, and valuations today. Smoke-free nicotine is the industry's future. This is where differences begin to show. It's too soon to panic, but one company is currently in a much better spot for the long term. 10 stocks we like better than British American Tobacco › Sin stocks, such as tobacco companies, aren't for everyone, but they make excellent dividend stocks due to their entrenched and resilient business models and huge profit margins, which allow them to send most of their profits to shareholders. Altria Group (NYSE: MO) and British American Tobacco (NYSE: BTI) are industry leaders with many similarities, including outsized dividends that yield around 7% at their current share prices. But which company would be a better fit in your portfolio? The tobacco industry is evolving, and one company is adapting better. Here is what you need to know. Altria and British American Tobacco sell many of the leading brands of cigarettes and other tobacco products. Altria operates primarily in the U.S., where it sells Marlboro cigarettes. British American Tobacco sells globally, where it competes mainly with Philip Morris International in non-U.S. markets. Investors looking at the financials will quickly notice that these two stocks are strikingly similar. Altria and British American Tobacco have nearly identical dividend yields, anticipated long-term earnings growth, and trade at almost the same valuation. Essentially, both companies are slow-growing, high-yield dividend stocks. You can also count on both companies to continue paying and raising their dividends. Both companies generate enough free cash flow to cover their dividends, and they have multibillion-dollar stakes in other companies that they can liquidate to raise cash. Altria owns a stake in Anheuser-Busch InBev, worth approximately $11 billion at the company's current price. British American Tobacco owns a roughly 25% stake in ITC Limited, an Indian conglomerate worth approximately $16 billion today. Despite the slow demise of traditional cigarettes, tobacco companies have become excellent financial survivalists. Modern society is aware of the health dangers of smoking, which is why cigarette use has been in decline for years. Tobacco companies know this and have spent the past decade rushing to develop and launch smokeless nicotine products that aren't healthy by any means but don't produce the harmful smoke cigarettes do. The big three product categories are electronic cigarettes/vapes, oral nicotine pouches, and heat-not-burn tobacco devices. The tobacco industry is becoming the nicotine industry, and market share is up for grabs as consumers transition from cigarettes to smokeless products. Both companies, directly or through joint ventures, have established offerings in all three smokeless categories. British American Tobacco has thrived with its electronic vape brand, Vuse, with an estimated 40% market share in its core markets. Sales of new product categories represented 13.2% of total revenue in 2024. Altria is much further behind. In 2018, the company invested $12.8 billion in a fast-growing electronic vape company, but the investment was a disaster that set the company back. Altria has worked on alternative plans since then, but sales of new product categories totaled just $300 million in 2024, only 1.2% of total revenue. While both companies should continue to squeeze value out of their cigarette businesses, Altria's long-term growth is currently on shakier ground. Philip Morris International is rolling out its leading heat-not-burn brand, IQOS, in the United States. IQOS offers a similar experience to cigarettes and has successfully converted smokers in other countries. If IQOS thrives and Marlboro's cigarette declines accelerate, it could further pressure Altria. Meanwhile, the U.S. government has begun cracking down on illegal vape products that have flooded the market. It's a win for Altria and British American Tobacco, but the latter should benefit more since Vuse already enjoys a whopping 50% share of the U.S. vaping market. Altria doesn't seem poised to enjoy the same market leadership with these next-generation nicotine products that it has for generations with Marlboro cigarettes. Unless that changes, Altria's business may grow weaker over time as cigarette volumes erode. Change is happening slowly, so Altria can still be an excellent short-term dividend stock. However, British American Tobacco is the superior high-yield stock to buy and hold. Before you buy stock in British American Tobacco, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and British American Tobacco wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Justin Pope has no position in any of the stocks mentioned. The Motley Fool recommends British American Tobacco P.l.c. and Philip Morris International and recommends the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool has a disclosure policy. Better High-Yield Dividend Stock: Altria or British American Tobacco? was originally published by The Motley Fool
Yahoo
3 days ago
- Business
- Yahoo
Better High-Yield Dividend Stock: Altria or British American Tobacco?
Altria and British American Tobacco have nearly identical dividend yields, growth, and valuations today. Smoke-free nicotine is the industry's future. This is where differences begin to show. It's too soon to panic, but one company is currently in a much better spot for the long term. 10 stocks we like better than British American Tobacco › Sin stocks, such as tobacco companies, aren't for everyone, but they make excellent dividend stocks due to their entrenched and resilient business models and huge profit margins, which allow them to send most of their profits to shareholders. Altria Group (NYSE: MO) and British American Tobacco (NYSE: BTI) are industry leaders with many similarities, including outsized dividends that yield around 7% at their current share prices. But which company would be a better fit in your portfolio? The tobacco industry is evolving, and one company is adapting better. Here is what you need to know. Altria and British American Tobacco sell many of the leading brands of cigarettes and other tobacco products. Altria operates primarily in the U.S., where it sells Marlboro cigarettes. British American Tobacco sells globally, where it competes mainly with Philip Morris International in non-U.S. markets. Investors looking at the financials will quickly notice that these two stocks are strikingly similar. Altria and British American Tobacco have nearly identical dividend yields, anticipated long-term earnings growth, and trade at almost the same valuation. Essentially, both companies are slow-growing, high-yield dividend stocks. You can also count on both companies to continue paying and raising their dividends. Both companies generate enough free cash flow to cover their dividends, and they have multibillion-dollar stakes in other companies that they can liquidate to raise cash. Altria owns a stake in Anheuser-Busch InBev, worth approximately $11 billion at the company's current price. British American Tobacco owns a roughly 25% stake in ITC Limited, an Indian conglomerate worth approximately $16 billion today. Despite the slow demise of traditional cigarettes, tobacco companies have become excellent financial survivalists. Modern society is aware of the health dangers of smoking, which is why cigarette use has been in decline for years. Tobacco companies know this and have spent the past decade rushing to develop and launch smokeless nicotine products that aren't healthy by any means but don't produce the harmful smoke cigarettes do. The big three product categories are electronic cigarettes/vapes, oral nicotine pouches, and heat-not-burn tobacco devices. The tobacco industry is becoming the nicotine industry, and market share is up for grabs as consumers transition from cigarettes to smokeless products. Both companies, directly or through joint ventures, have established offerings in all three smokeless categories. British American Tobacco has thrived with its electronic vape brand, Vuse, with an estimated 40% market share in its core markets. Sales of new product categories represented 13.2% of total revenue in 2024. Altria is much further behind. In 2018, the company invested $12.8 billion in a fast-growing electronic vape company, but the investment was a disaster that set the company back. Altria has worked on alternative plans since then, but sales of new product categories totaled just $300 million in 2024, only 1.2% of total revenue. While both companies should continue to squeeze value out of their cigarette businesses, Altria's long-term growth is currently on shakier ground. Philip Morris International is rolling out its leading heat-not-burn brand, IQOS, in the United States. IQOS offers a similar experience to cigarettes and has successfully converted smokers in other countries. If IQOS thrives and Marlboro's cigarette declines accelerate, it could further pressure Altria. Meanwhile, the U.S. government has begun cracking down on illegal vape products that have flooded the market. It's a win for Altria and British American Tobacco, but the latter should benefit more since Vuse already enjoys a whopping 50% share of the U.S. vaping market. Altria doesn't seem poised to enjoy the same market leadership with these next-generation nicotine products that it has for generations with Marlboro cigarettes. Unless that changes, Altria's business may grow weaker over time as cigarette volumes erode. Change is happening slowly, so Altria can still be an excellent short-term dividend stock. However, British American Tobacco is the superior high-yield stock to buy and hold. Before you buy stock in British American Tobacco, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and British American Tobacco wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Justin Pope has no position in any of the stocks mentioned. The Motley Fool recommends British American Tobacco P.l.c. and Philip Morris International and recommends the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool has a disclosure policy. Better High-Yield Dividend Stock: Altria or British American Tobacco? was originally published by The Motley Fool
Yahoo
3 days ago
- General
- Yahoo
North Country kids protest Big Tobacco in Washington
WASHINGTON, D.C. (ABC22/FOX44) – One group of North Country students took a trip to the nation's capital to take a stand against Big Tobacco. In a two-day event in Washington, students from around the country met to discuss their common cause, and protested outside the lobbyist office for Altria, one of the nation's biggest tobacco companies. Canadian border crossings plunge in 2025, tourism industry concerned 'We did a rally on the day of Altria's shareholder meeting,' said McKenna McGrath, a sophomore at Beekmantown Central School. 'They're targeting children… they're using a highly addictive chemical like nicotine to addict kids at a young age.' Tobacco-Free Clinton Franklin Essex and Reality Check (Tobacco-Free CFE) is a program under the Champlain Valley Family Center that aims to 'reinforce the tobacco-free norm in communities throughout New York State'. Its specific goals include ending tobacco sales at pharmacies and achieving smoking bans in parks and apartment buildings. Legislators push rent reforms amid housing crisis Ada Burgess, a freshman at Plattsburgh High School, said, 'I think one of the key things is about looking in your community and seeing the specific issues your community faces. One of the issues, in my school specifically, a lot of kids vape. We want to try to help kids and not just tell them, 'Oh, smoking is bad.'' This is the tenth year Tobacco-Free CFE has helped send students to Washington for this event. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
5 days ago
- General
- Yahoo
Clinton, Franklin, Essex Reality Check youth take action against tobacco at national conference
PLATTSBURGH — Clinton Franklin Essex Reality Check youth traveled to Washington, D.C. last week to stand up to Big Tobacco as part of the 2025 Mobilize Against Tobacco Lies conference. Reality Check is a youth-led program that empowers teens to fight back against tobacco marketing and work toward a healthier, tobacco-free future for their generation. The event took place from May 14 to May 15 and brought together young advocates from across the country to call out tobacco industry deception and demand change. The two-day event began with intensive training led by national public health organizations such as the Campaign for Tobacco-Free Kids and Counter Tools. These sessions covered rally planning, media engagement and current nicotine trends equipping students with the tools to make their voices heard. The conference culminated in a powerful demonstration outside the Washington, D.C. lobbyist office of Altria Group, which was holding its annual virtual shareholder meeting. Just steps from the U.S. Capitol, youth delivered a bold message: 'Don't Get Caught in Altria's Web of Lies.' 'Being there in person and seeing the effect we had on shareholders and the general public was really impactful,' Ada Burgess, a local Reality Check participant, said. 'Even negative reactions showed they noticed us and were affected by what we were saying. It's powerful to realize we can actually make a difference.' Reality Check participants and national youth leaders also made their voices heard inside the virtual shareholder meeting by using Altria stock to submit tough questions to company executives during the Q&A session. These powerful contributions challenged the company's narrative and brought youth concerns directly to the forefront. McKenna McGrath, another Reality Check advocate, said 'it was a really powerful and valuable experience.' After the demonstration, the group gathered with peers and mentors to reflect on the day's actions, share insights, and plan how to bring the momentum back to their local communities. Alice Elizabeth Ladue, Reality Check Coordinator for Clinton Franklin Essex, praised the students. 'These young people are fierce, informed, and fearless,' Ladue said. 'They're taking on one of the most powerful industries in the world and they're already making a real impact.'
