Latest news with #NJOY
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
Yahoo
21-05-2025
- 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
Yahoo
20-05-2025
- Business
- Yahoo
Altria vs. Philip Morris: Which Tobacco Stock Is a Better Buy Now?
In the world of tobacco investing, Altria Group, Inc. MO and Philip Morris International Inc. PM stand out as two of the most dominant players. While they share a common legacy, their strategies have diverged in recent years. Altria remains focused on the U.S. market, where it continues to dominate in traditional cigarettes while gradually expanding into reduced-risk products (RRPs). Philip Morris, in contrast, is leading a global transformation, aggressively expanding its heated tobacco portfolio and advancing its smoke-free future investors comparing these two tobacco giants, the real question is: Which stock has greater long-term growth potential, and how well is each company executing its transition from traditional tobacco to next-generation products? Image Source: Zacks Investment Research Altria, the company behind Marlboro in the United States, stands at a pivotal moment in its history. With smoking rates in long-term decline and nicotine preferences rapidly shifting, the company faces growing pressure to move beyond its cigarette-heavy roots. While Altria still commands over 40% of the U.S. cigarette market, cigarette volumes continue to shrink, and pricing power — a key buffer for years — is beginning to lose effectiveness amid inflation and growing consumer price sensitivity. In the first quarter of 2025, its Smokeable Products' net revenues fell 5.8% to $4,622 million due to reduced shipment volume. The broader tobacco landscape is clearly evolving, and for Altria, the urgency to accelerate its transition into RRPs has never been greater. To address this shift, it is building a smoke-free portfolio, focusing on modern oral nicotine and vapor products. Through its subsidiary Helix Innovations, Altria owns 100% of on!, a tobacco-derived nicotine pouch that is gaining traction with U.S. consumers. In the first quarter, shipment volumes for on! grew 18% year over year, despite higher prices at retail. This growth reflects rising consumer acceptance and brand equity, though the competitive environment remains intense. Swedish Match, owned by Philip Morris, continues to expand in the category, making the race for the share in modern oral both fast-moving and Altria's efforts in the e-vapor space have faced more significant headwinds. The company was recently forced to pull NJOY ACE from the market following a regulatory challenge. The setback has disrupted near-term momentum, but Altria remains committed to the vapor category. It has called out the growing share of illicit disposable vapes, which now make up over 60% of the e-vapor market and pose a direct threat to authorized products like NJOY. Despite these challenges, Altria views the situation as an opportunity to innovate, with plans to use NJOY's R&D capabilities to develop next-generation, compliant vapor products that can better meet consumer its global peers, Altria is fully concentrated in the U.S. market — an advantage in terms of operational focus, but a liability in an increasingly restrictive regulatory climate. With potential menthol bans, nicotine caps, and flavor restrictions on the horizon, it is operating in a tightening environment that limits innovation and slows product adoption. This domestic-only exposure increases the complexity and cost of execution, leaving Altria with less room for error as it navigates its transformation. Philip Morris is setting a new industry benchmark in the global shift toward a smoke-free future. At the heart of this transformation is IQOS, PMI's flagship heat-not-burn device, which has emerged as a leading RRP. IQOS continues to gain strong traction in key international markets, including Japan and several parts of Europe, as adult smokers seek better alternatives to traditional many competitors still reliant on combustible tobacco products, Philip Morris is reinventing its core business through investments in science-based alternatives designed to help adult smokers transition away from smoking. In 2022, PM further strengthened its smoke-free product portfolio with the acquisition of Swedish Match, securing a strong position in the rapidly expanding oral nicotine segment. This strategic move complements IQOS and has broadened PMI's offerings with popular products like ZYN nicotine pouches and General snus. This transformation is already delivering results. In the first quarter of 2025, smoke-free products contributed 42% of the company's total revenues and 44% of gross profit. The segment saw a 15% year-over-year revenue increase. IQOS maintained its leadership in the inhalable smoke-free category, while ZYN continued to gain market share, with rising shipment volumes in the oral nicotine market. At the same time, the company continues to demonstrate strength in its traditional combustible tobacco business, which achieved organic revenue growth of 3.8% in the first quarter. This highlights the company's ability to manage its legacy operations while accelerating the shift toward sets Philip Morris apart is its ability to combine cutting-edge product innovation with strong regulatory credibility. Unlike MO, which operates within the U.S. market, PMI's global footprint enables it to tap into diverse international markets, unlocking broader growth opportunities and allowing for better regulatory risk diversification. While challenges such as currency volatility and geopolitical uncertainty persist, these are balanced by PM's robust pipeline of smoke-free innovations, its well-established brand equity, and growing presence in the global RRP space. The Zacks Consensus Estimate for Philip Morris' 2025 earnings per share (EPS) has moved up 3.3% over the last 30 days to $7.47, signaling a projected year-over-year increase of 13.7%. In comparison, the consensus EPS estimate for Altria has moved up 1.3% to $5.35 during the same period and points to growth of 4.5% for 2025. This comparison highlights a more optimistic profitability outlook for PM relative to MO. Philip Morris currently trades at a forward 12-month P/E of 22.20x while Altria trades at a lower multiple of 10.97. While PM's valuation looks richer, investors are paying for visibility into a transformation that is already underway. Image Source: Zacks Investment Research Backing this valuation, Philip Morris' stock has outperformed with a 73.9% gain over the past year, well ahead of Altria's 29.6% and the industry's 54.5%, highlighting investor confidence in its growth strategy. While both Altria and Philip Morris offer exposure to the evolving tobacco industry, PM stands out with its proven success in RRPs, global diversification and stronger earnings growth outlook. Altria's U.S. market dominance remains appealing, but regulatory headwinds and a slower RRP transition limit its near-term upside. With a clearer smoke-free strategy, accelerating revenues from alternatives like IQOS and ZYN, and stronger stock performance, Philip Morris appears to be the better tobacco stock to buy for long-term growth. PM currently has a Zacks Rank #1 (Strong Buy), while MO carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Altria Group, Inc. (MO) : Free Stock Analysis Report Philip Morris International Inc. (PM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Business Wire
15-05-2025
- Business
- Business Wire
Altria Holds 2025 Annual Meeting of Shareholders; Declares Regular Quarterly Dividend of $1.02 Per Share
RICHMOND, Va.--(BUSINESS WIRE)--Altria Group, Inc. (Altria) (NYSE: MO) held our 2025 Annual Meeting of Shareholders (Annual Meeting) today. During the Annual Meeting, Billy Gifford, Altria's Chief Executive Officer, addressed shareholder questions. A copy of the presentation and a replay of the webcast are available on The preliminary voting results from our shareholders at the Annual Meeting were as follows: elected to a one-year term each of the 11 nominees for our Board of Directors (Board) named in our 2025 Proxy Statement; ratified the selection of PricewaterhouseCoopers LLP as our independent registered public accounting firm for 2025; approved, on an advisory basis, the compensation of our named executive officers; approved the 2025 Performance Incentive Plan; and approved the 2025 Stock Compensation Plan for Non-Employee Directors. Final voting results will be reported in a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission. Following the Annual Meeting, our Board declared a regular quarterly dividend of $1.02 per share, payable on July 10, 2025, to shareholders of record as of June 16, 2025. The ex-dividend date is June 16, 2025. Future dividend payments remain subject to the discretion of our Board. Altria's Profile Expand We have a leading portfolio of tobacco products for U.S. tobacco consumers age 21+. Our Vision is to responsibly lead the transition of adult smokers to a smoke-free future (Vision). We are Moving Beyond Smoking ™, leading the way in moving adult smokers away from cigarettes by taking action to transition millions to potentially less harmful choices - believing it is a substantial opportunity for adult tobacco consumers, our businesses and society. Our wholly owned subsidiaries include leading manufacturers of both combustible and smoke-free products. In combustibles, we own Philip Morris USA Inc. (PM USA), the most profitable U.S. cigarette manufacturer, and John Middleton Co. (Middleton), a leading U.S. cigar manufacturer. Our smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Company LLC (USSTC), the leading global moist smokeless tobacco (MST) manufacturer, Helix Innovations LLC (Helix), a leading manufacturer of oral nicotine pouches, and NJOY, LLC (NJOY), an e-vapor manufacturer with products covered by marketing granted orders from the U.S. Food and Drug Administration (FDA). Additionally, we have a majority-owned joint venture, Horizon Innovations LLC (Horizon), for the U.S. marketing and commercialization of heated tobacco stick products. Our equity investments include Anheuser-Busch InBev SA/NV (ABI), the world's largest brewer, and Cronos Group Inc. (Cronos), a leading Canadian cannabinoid company. The brand portfolios of our operating companies include Marlboro ®, Black & Mild ®, Copenhagen ®, Skoal ®, on! ® and NJOY ®. Trademarks related to Altria referenced in this release are the property of Altria or our subsidiaries or are used with permission. Learn more about Altria at and follow us on X (formerly known as Twitter), Facebook and LinkedIn.
Yahoo
15-05-2025
- Business
- Yahoo
Altria Holds 2025 Annual Meeting of Shareholders; Declares Regular Quarterly Dividend of $1.02 Per Share
RICHMOND, Va., May 15, 2025--(BUSINESS WIRE)--Altria Group, Inc. (Altria) (NYSE: MO) held our 2025 Annual Meeting of Shareholders (Annual Meeting) today. During the Annual Meeting, Billy Gifford, Altria's Chief Executive Officer, addressed shareholder questions. A copy of the presentation and a replay of the webcast are available on Preliminary Voting Results The preliminary voting results from our shareholders at the Annual Meeting were as follows: elected to a one-year term each of the 11 nominees for our Board of Directors (Board) named in our 2025 Proxy Statement; ratified the selection of PricewaterhouseCoopers LLP as our independent registered public accounting firm for 2025; approved, on an advisory basis, the compensation of our named executive officers; approved the 2025 Performance Incentive Plan; and approved the 2025 Stock Compensation Plan for Non-Employee Directors. Final voting results will be reported in a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission. Regular Quarterly Dividend Following the Annual Meeting, our Board declared a regular quarterly dividend of $1.02 per share, payable on July 10, 2025, to shareholders of record as of June 16, 2025. The ex-dividend date is June 16, 2025. Future dividend payments remain subject to the discretion of our Board. Altria's Profile We have a leading portfolio of tobacco products for U.S. tobacco consumers age 21+. Our Vision is to responsibly lead the transition of adult smokers to a smoke-free future (Vision). We are Moving Beyond Smoking™, leading the way in moving adult smokers away from cigarettes by taking action to transition millions to potentially less harmful choices - believing it is a substantial opportunity for adult tobacco consumers, our businesses and society. Our wholly owned subsidiaries include leading manufacturers of both combustible and smoke-free products. In combustibles, we own Philip Morris USA Inc. (PM USA), the most profitable U.S. cigarette manufacturer, and John Middleton Co. (Middleton), a leading U.S. cigar manufacturer. Our smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Company LLC (USSTC), the leading global moist smokeless tobacco (MST) manufacturer, Helix Innovations LLC (Helix), a leading manufacturer of oral nicotine pouches, and NJOY, LLC (NJOY), an e-vapor manufacturer with products covered by marketing granted orders from the U.S. Food and Drug Administration (FDA). Additionally, we have a majority-owned joint venture, Horizon Innovations LLC (Horizon), for the U.S. marketing and commercialization of heated tobacco stick products. Our equity investments include Anheuser-Busch InBev SA/NV (ABI), the world's largest brewer, and Cronos Group Inc. (Cronos), a leading Canadian cannabinoid company. The brand portfolios of our operating companies include Marlboro®, Black & Mild®, Copenhagen®, Skoal®, on!® and NJOY®. Trademarks related to Altria referenced in this release are the property of Altria or our subsidiaries or are used with permission. Learn more about Altria at and follow us on X (formerly known as Twitter), Facebook and LinkedIn. View source version on Contacts Altria Client ServicesInvestor Relations804-484-8222 Altria Client ServicesMedia Relations804-484-8897 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
