Latest news with #AltriaGroup
Yahoo
20 hours ago
- Business
- Yahoo
With 63% ownership, Altria Group, Inc. (NYSE:MO) boasts of strong institutional backing
Given the large stake in the stock by institutions, Altria Group's stock price might be vulnerable to their trading decisions A total of 25 investors have a majority stake in the company with 44% ownership Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If you want to know who really controls Altria Group, Inc. (NYSE:MO), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 63% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. In the chart below, we zoom in on the different ownership groups of Altria Group. Check out our latest analysis for Altria Group Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Altria Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Altria Group, (below). Of course, keep in mind that there are other factors to consider, too. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Altria Group is not owned by hedge funds. The Vanguard Group, Inc. is currently the company's largest shareholder with 9.4% of shares outstanding. With 7.4% and 4.6% of the shares outstanding respectively, BlackRock, Inc. and Capital Research and Management Company are the second and third largest shareholders. A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our information suggests that Altria Group, Inc. insiders own under 1% of the company. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own US$88m of stock. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling. With a 37% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Altria Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. It's always worth thinking about the different groups who own shares in a company. But to understand Altria Group better, we need to consider many other factors. Take risks for example - Altria Group has 2 warning signs (and 1 which can't be ignored) we think you should know about. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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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
22-05-2025
- Business
- Yahoo
This High-Yield Dividend King is Worth a Closer Look
Altria Group, Inc. (NYSE:MO) is a Virginia-based tobacco giant that is navigating through a shifting landscape as cigarette consumption continues to decline across North America. This industry trend has taken a toll on the company's shipment volumes. Its core smokeable products segment saw domestic cigarette shipments fall by 13.7% year-over-year in Q1 2025, largely due to the rise of illicit e-vapor alternatives. Even its cigar shipments were down 2.9%. However, Altria Group, Inc. (NYSE:MO) is not passively watching its traditional business erode. The 2023 acquisition of NJOY reflects a deliberate push into the smoke-free nicotine category. While still a small piece of the company's portfolio, NJOY consumables showed promise, with Q1 shipment volumes up nearly 24% to 13.5 million units. This evolving landscape naturally raises questions about dividend sustainability—a top concern for income-focused investors. Encouragingly, Altria Group, Inc. (NYSE:MO) trailing twelve-month free cash flow stood at $4.38 billion, with operating cash flow reaching $8.6 billion. These figures suggest the company is well-positioned to maintain its dividend, provided the underlying business remains stable. Altria Group, Inc. (NYSE:MO)'s dividend history is notably strong. With 59 dividend hikes over the past 55 years, the company is a Dividend King, and its track record signals long-term reliability. Its 2024 dividend increase aligned with its mid-single-digit annual dividend growth target through 2028. A payout ratio of 60% appears reasonable, even amid operational challenges. In the latest quarter alone, Altria returned $1.7 billion to shareholders through dividends, underlining its commitment to income investors. Despite facing headwinds, Altria Group, Inc. (NYSE:MO)'s strong cash flow, resilient margins, and attractive 7% dividend yield offer reassurance. In today's uncertain market environment, where investors are increasingly shifting from speculative tech plays to income-generating and fundamentally solid businesses, Altria stands out as a compelling candidate for dividend-focused portfolios. The stock has surged by over 14% since the start of 2025, outperforming the broader market by a wider margin. While we acknowledge the potential of MO as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than MO but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ MORE: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
