Market Overview - The S&P 500 index is currently approximately 9% above its 52-week low recorded just last week, indicating a slight recovery in the market [1]. Investor Sentiment - There remains significant uncertainty in the financial markets, which could impact investor confidence and market stability [1].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving Altria Group, Inc. and its executives, following a downgrade by Deutsche Bank due to regulatory uncertainties impacting the company's e-vapor products [1][3]. Group 1: Investigation and Legal Actions - Pomerantz LLP is conducting an investigation on behalf of Altria investors regarding possible securities fraud or other unlawful business practices by the company and its officers [1]. - Investors are encouraged to contact Pomerantz LLP for more information about the investigation [1]. Group 2: Stock Performance and Analyst Ratings - On April 2, 2025, Deutsche Bank downgraded Altria's stock rating from "Buy" to "Hold" due to regulatory uncertainties after a ruling by the U.S. International Trade Commission regarding patent infringement related to Altria's NJOY ACE e-vapor products [3]. - Following the downgrade, Altria's stock price decreased by $1.67, or 2.84%, closing at $57.12 per share on the same day [3].

For Immediate ReleaseChicago, IL – April 17, 2025 – Today, Zacks Equity Research Equity Philip Morris International Inc. (PM) , Altria Group, Inc. (MO) and Turning Point Brands, Inc. (TPB) .Industry: TobaccoLink: https://www.zacks.com/commentary/2449632/3-tobacco-stocks-worth-watching-on-robust-industry-trendsThe Zacks Tobacco industry is shifting focus toward smoke-free alternatives, driven by rising consumer health awareness and stricter regulations on traditional cigarettes. Leading companies like Philip ...

Core Viewpoint - Altria (NYSE: MO) has demonstrated exceptional long-term performance, with a single dollar invested in 1968 growing to $6,638, representing a return of 663,700% or over 20% annually when dividends are reinvested [1] Group 1: Investment Strategy - Value dividend investing is highlighted as an effective investment strategy, allowing investors to acquire quality companies at attractive prices while generating cash flow without the need to sell stock positions [1] - The focus is on building a portfolio of dividend growth stocks to achieve financial independence through dividend income [1]

The Zacks Tobacco industry is shifting focus toward smoke-free alternatives, driven by rising consumer health awareness and stricter regulations on traditional cigarettes. Leading companies like Philip Morris International Inc. (PM) , Altria Group, Inc. (MO) and Turning Point Brands, Inc. (TPB) are investing heavily in reduced-risk products (RRPs) to capitalize on this growing trend.While cigarette sales continue to decline due to inflation and changing consumer habits, the industry maintains strong pricing ...

Core Viewpoint - Altria Group (NYSE: MO) is considered a strong investment choice for uncertain market conditions, with a focus on its resilience and dividend-generating capabilities [1]. Company Insights - Altria is currently the largest holding in the consumer products portfolio, indicating confidence in its stability during market fluctuations [1]. - The company is positioned well for dividend investing, which is highlighted as a key strategy for achieving financial freedom [1]. Investment Strategy - The article emphasizes the importance of dividend investing as a straightforward and accessible method for building long-term wealth [1]. - The author shares insights from extensive experience in M&A and business valuation, which supports the analysis of Altria's financial health and investment potential [1].

Core Viewpoint - Altria (NYSE: MO) is one of the few stocks showing positive performance amidst a market downturn [1] Group 1: Company Performance - Altria is currently posting green candles while most other stocks are declining [1] Group 2: Market Context - The article discusses the broader market conditions, indicating a general market tumble with only a handful of stocks performing well [1]

Core Viewpoint - Altria Group is positioned as a stable investment option during market uncertainty, offering consistent dividend income and potential growth in its smoke-free product segment [2][10]. Financial Performance - Altria's net revenue after excise taxes increased by 1.6% year-over-year to $5.1 billion, despite an 8% decline in cigarette sales volume [3]. - The smokeables division generated an operating income of $10.8 billion in 2024, with a 60% operating margin, highlighting its profitability [3]. Product Strategy - Altria aims to double its smoke-free product sales to $5 billion by 2028, although it currently lags behind competitors like Philip Morris International [4]. - The company is focusing on expanding its smoke-free product offerings, including nicotine pouches and electronic vaping [4]. Capital Returns and Dividends - Altria has reduced its shares outstanding by 14% over the last 10 years, with accelerated buybacks in 2024 [6]. - The dividend per share has increased by approximately 100% over the past decade, with a current quarterly payout of $1.02 [6]. - Management plans to grow the dividend per share at a mid-single-digit percentage rate annually, around 5% through 2028 [7]. Investment Rationale - Investing $1,000 in Altria Group stock is projected to yield around $70 in annual dividend income based on the current yield [9]. - The company has demonstrated a 103% growth in free cash flow per share over the last 10 years, providing a solid foundation for future dividend increases [9][10].

Group 1: Tobacco Industry Overview - British American Tobacco (BTI) has a dividend yield of 7.2%, while Altria (MO) has a yield of 6.9% [1] - Both companies have been raising their dividends, primarily due to their ability to increase cigarette prices [3] - However, cigarette volumes have been declining for years, with British American Tobacco's volume falling by 5% and Altria's by 10.2% in 2024 [4] Group 2: Risks in Tobacco Sector - Price hikes have been used to offset declining volumes, but this strategy may not be sustainable long-term [5] - Both companies are attempting to diversify away from cigarettes but have not yet found a viable solution [5] - The long-term decline in cigarette volumes poses a risk to the sustainability of their dividends [15] Group 3: Alternative Investment Opportunities - Enterprise Products Partners (EPD), Enbridge (ENB), and Realty Income (O) are presented as less risky alternatives with yields of 6.2%, 5.8%, and 5.6% respectively [2] - Midstream companies like Enterprise and Enbridge generate stable cash flows from energy infrastructure, which is less affected by volatile oil and gas prices [7] - Realty Income operates in the real estate investment trust sector, owning over 15,600 properties, which mitigates tenant risk through diversification [11][12] Group 4: Financial Stability of Alternatives - Enterprise has increased its distribution annually for 26 consecutive years, while Enbridge has a 30-year dividend streak [10] - Realty Income's size and financial strength provide it with advantageous access to capital markets, allowing for larger deals and steady growth [13] - Realty Income has a history of three decades of annual dividend increases, making it a reliable choice for income investors [14]

Core Viewpoint - The recent overhaul of U.S. trade policies, including updated tariffs on over 180 countries, is expected to impact various American companies, but Altria Group is positioned to weather these changes due to its domestic sourcing of tobacco products [1][3]. Company Overview - Altria Group is the largest tobacco company in the U.S., owning well-known brands such as Marlboro, Copenhagen, and Skoal [3]. - The company generates nearly all of its revenue from tobacco, with $24 billion in revenue for 2024, of which $21.2 billion comes from smokable products and $2.78 billion from oral tobacco products [4]. Industry Context - The tobacco industry has faced challenges due to declining smoking rates, which have dropped around 20% in the past decade [5]. - Despite these challenges, Altria's revenue structure may benefit from the current economic climate, as tobacco products tend to remain in demand even during economic downturns [6][7]. Economic Resilience - Altria is considered one of the more recession-resistant businesses, as consumers are likely to prioritize spending on tobacco over other non-essential items during tough economic times [7]. - The addictive nature of tobacco provides Altria with significant pricing power, allowing the company to maintain steady finances despite declining smoking rates [8]. Dividend Performance - Altria has been recognized for its attractive dividend yield, which is around 7%, significantly higher than the S&P 500 average [9]. - The company has a strong track record of increasing its dividend for 55 consecutive years, placing it among elite Dividend Kings [10]. - Altria prioritizes maintaining its dividend, recognizing its importance to shareholders [11].